Today, the Minister of Finance, Jim Flaherty, released the government’s Fall Fiscal Update.  The Fiscal Update is traditionally an opportunity for the government to update the economic forecasts from the last Budget, and outline how that will impact tax revenue in the coming years. 

The current global economic turmoil has taken a high toll in many countries, and Canada is not immune to its effects.  However, we are still in the best position among the G7 countries, and will continue to keep balanced budgets until the recovery in 2010-11. 

The Fiscal Update proposes a number of measures to rein in government spending, including:

• Eliminating subsidies for political parties paid for by taxpayers (saving $28 million /year);
• Reducing unnecessary costs by reviewing the effectiveness of government operations, including crown assets;
• Aimed at finding savings of $15 billion over five years
• Ensuring that federal public sector wages grow at a reasonable and affordable rate, including the pay of MPs, Senators, cabinet ministers and senior bureaucrats; and
• Putting Equalization on a sustainable rate of growth.

“I believe it’s only right that as Canadians are having to tighten their belts and cut back on spending, that we as Parliamentarians also make sacrifices.” Stanton noted. “We’re leading by example.”

The Update also contains measures to provide relief to pensioners and pension plans:

• Provide solvency funding relief to federally regulated private pension plans;
• Enhance credit availability through Crown agencies for Canadian businesses; and
• Reduce the minimum withdrawal requirements for Registered Retirement Income Funds by 25 per cent for 2008.

“One of the most common concerns I heard around the riding was about the state of people’s Registered Retirement Income Funds (RRIFs) and other pensions.  I was therefore very pleased to see the Minister taking action on this front.” Stanton commented.