Thursday next week, on March 4, the Honourable Jim Flaherty will rise in the House of Commons to deliver the federal 2010 budget. At the same time the Department of Finance Canada will start tweeting. Yup, links to relevant portion of the budget will be tweeted in real time on the popular new social media.
Today's Finance Canada official news release states that Finance Minister Flaherty explained as follows:
“Our Government wants to reach out to inform Canadians of actions we are taking to support the economy. Using social media will bring our message to Canadians in a new, cost-effective and convenient way.” Who said the Conservatives are not progressive and cool?
This tweeting policy is not limited to Budget Day but heralds the use of a new communication tool; followers will receive Links to Finance news releases, advisories, major speeches as well as links to Finance Canada's publication report. Add Finance Canada to the "tweeters" you want to follow by going to: http://www.twitter.com/financecanada.
No new taxes or expenditures.
Badmouths will surely say that use of Twitter is very appropriate since any important budget announcement would likely fit in the 140 characters space that defines this new social media... Indeed, information leaked in the last days is that no new taxes or new expenditures measures would be included in the budget.
The budget will stay the course in terms of the measures announced last year to fight the Great Recession; however, if no new expenditures are to be announced, it must be concluded that the popular "Home Renovation Income Tax Credit", which expired on February 1st, would not be renewed.
According to Finance Canada sources, the budget will however outline how the Conservative government intends to tackle the growing deficit, still currently projected at a whooping 56.7$ billions for the fiscal year-end closing on March 31. It would appear that measures are being planned to closely control and prevent any further growth of government expenditures other than Health and Education.
Mr. Flaherty and Harper have often repeated that they were not concerned by the growing budgetary deficit as they believe that revenue growth after the end of the recession would suffice to pay back supplementary debt incurred to fight the recession. Others believe resorbing the deficit will prove impossible without raising taxes. The budget will clearly outline the government's plan in this respect.
Only time will tell if cutting the deficit can be done without raising taxes; one thing is sure, Canada cannot sustain for long the current level of deficits.
The Ottawa Tax Examiner will follow, analyse and report budget information as it becomes available.
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