Saturday 29 August 2020

KISS NB provincial political party - Gerald Bourque is founder/leader - check it out!

 KISS NB Political Party looking for more candidates as the deadline approaches... get in touch at their Facebook and Website:

https://www.facebook.com/KISSNB/

http://kissnb.com/



Who started the party?


Not to over-emphasize the fact, but our Finance Minister, in his recent Financial Update, projected a deficit of $299.2 million for the fiscal year 2020-2021 compared to a budgeted surplus of $92.4 million.

This is, in my opinion, severely understated. Here’s my reasoning.

For the fiscal year 2018-2019, NB had revenues of $9,697.1 billion with a GDP of 37.5%. (Figures from last audited statement)

Deducting the federal transfers which total 33% of revenues, leaves $6,497.1 in revenues.

For every 1% of GDP, revenues total $173.3 million.

Our Finance Minister projects that real GDP growth for 2020 will be negative at 4.3%. Our private sector forecasters project a 5.5% contraction of GDP.

Using the Minister’s own figures, NB’s revenues will decrease as follows:

-4.3% @ $173.3 million…$745.2 million

-5.5% @ $173.3 million…$ 953.2 million

This is far from $299.2 million.

I believe this to be very serious. If I am right, how will this additional revenue be made up? Borrowing, of course, which we can ill afford. Unless the BoC steps in. And furthermore, I believe that our GDP contraction will be far greater than 5.5%. Fasten your seat belt!!

And this revenue loss does not account for the additional expenses resulting from the coronavirus which the Minister has projected at $100 million. Again, severely understated. WOW!

My thoughts for the day!


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