“Deficit is not a dirty word” says Manitoba. Manitoba clears out the air and begins a heated debate for transfer payments and equalization.
The Federal Government argues that they are willing to increase federal transfers but not at this moment in time. With our current economic crisis, the Federal Government believes that Canada should cooperatively reduce our budgets in order to withstand the crisis together. The Federal Government is unable to make any guarantees because of the fluctuations in the economy provides instability.
However provinces just wants the Federal Government to commit to a minimum transfer payment. Transfers are needed especially during an economic crisis. “We should not fear of going into a deficit” says Alberta. Provinces appear to believe that the Federal Government is better equipped to run under a deficit more so than the Federal Government itself.
An agreement is yet to be reached.
Joyce Chan, The Seditious Times
