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Most Canadian provinces have ‘roared back’ amid disappearing COVID deficits: report – Global News

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Most Canadian provinces are on track to have their deficits recovered much faster than expected despite massive COVID-related expenditures, according to a new report from the Canadian Centre for Policy Alternatives (CCPA).

The report, Disappearing Act: The state of provincial deficits in Canada, that CCPA senior economist David Macdonald released Thursday, finds that the provinces overall are in better fiscal shape than after the last recession.

Nine out of 10 provinces are paying less interest now, as a proportion of GDP, compared to after the Great Recession in 2009-10, the report showed.

As a result, paying less interest is saving the provinces a combined $6 billion in 2021-22 alone, the report showed.

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“The important thing to take away from this is that these deficits are no longer being caused by COVID-19. In fact, the economies have roared back for most provinces,” said Macdonald, the report’s author.

According to Statistics Canada, the economy grew 4.6 per cent in 2021, compared with a decline of 5.2 per cent in 2020, the first year of the COVID-19 pandemic.

GDP growth in the fourth quarter came in at an annualized rate of 6.7 per cent.

Macdonald also explained that the initial deficit estimates from the provinces at the beginning of the pandemic were far off the mark.

“Provincial cupboards aren’t bare, instead they’ve been stuffed with federal cash through major direct transfers and indirectly through the roaring economic growth federal spending created,” said Macdonald.

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However, in Ontario and Saskatchewan, deficits will persist for longer because these provinces collect among the least in taxes compared to the size of their economies.

“The bottom line is that failing to collect enough in taxes to cover provincial spending is the result of policy choices, not the impacts of COVID-19,” said Macdonald.

The report found that British Columbia, Alberta, Manitoba, Quebec, Nova Scotia and New Brunswick will likely show surpluses this year or next.

Together, provinces cut their deficits in half in 2020-21 — from initial projections of $93 billion to $48 billion — and by two-thirds in 2021-22, from $70 billion to $22 billion, the report stated.






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The report also showed that Newfoundland and Labrador, Ontario and P.E.I. should have “manageable deficit-to-GDP ratios of less than one per cent by the next fiscal year — Saskatchewan is projected to be sitting near two per cent by that time.”

In January 2022, Canada’s finance minister Chrystia Freeland said during a news conference that this year’s federal budget will focus on the need to make the country more competitive and innovative.

Freeland said a growing economy would help keep federal finances on solid footing after an expensive two years when the treasury has pumped out unprecedented aid to combat the economic fallout from COVID-19.

The Finance Department is projecting the deficit this year to hit $144.5 billion, one year after a shortfall of $327.7 billion. The deficit for the next fiscal year, starting in April, is projected to hit $58.4 billion, not including any new spending promises in the budget.

Macdonald said now the provinces have the resources to address big issues related to the pandemic, like long-term care and health care, but also issues unrelated to the pandemic, like climate change.

“Let’s strengthen our health care systems for future waves of COVID-19 or other events.. The money now exists in provincial coffers to do that. So now is the time to act on that with those surpluses,” he said.

— with files from The Canadian Press

© 2022 Global News, a division of Corus Entertainment Inc.

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RCMP end latest N.B. search regarding teenage girl who went missing in 2021

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BATHURST, N.B. – RCMP in New Brunswick say a weekend ground search for evidence related to the disappearance of a teenage girl in 2021 didn’t reveal any new information.

In an emailed statement, the RCMP said 20 people participated in the search for evidence in the case of Madison Roy-Boudreau of Bathurst.

The release said the search occurred in the Middle River area, just south of the girl’s hometown.

Police have said the 14-year-old’s disappearance is being treated as a homicide investigation.

The RCMP said the search “did not reveal any new information regarding the circumstances of her disappearance.”

There are no plans for another search until police receive a tip or a lead pointing to a new search area.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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Man Tasered after trespassing in Victoria school, forcing lockdown

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VICTORIA – A middle school in Victoria was forced into a lockdown after a man entered the building without permission, and police say they had to use a stun gun to make an arrest.

Victoria police say officers received multiple calls around noon on Monday of an unknown male entering Central Middle School, leading staff to set off emergency procedures that put the building under lockdown.

Police say its emergency response team arrived within minutes and found the suspect, who “appeared to be in a drug-induced state,” in the school’s library.

A statement from police says the suspect resisted arrest, and officers had to use a Taser to subdue the man.

He’s being held by police and has been assessed by emergency medical staff.

Police say the man was not armed and there were no continuing safety concerns for students and staff following the arrest.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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B.C. Greens’ ex- leader Weaver thinks minority deal with NDP less likely than in 2017

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VANCOUVER – Former B.C. Green leader Andrew Weaver knows what it’s like to form a minority government with the NDP, but says such a deal to create the province’s next administration is less likely this time than seven years ago.

Weaver struck a power-sharing agreement that resulted in John Horgan’s NDP minority government in 2017, but said in an interview Monday there is now more animosity between the two parties.

Neither the NDP nor the B.C. Conservatives secured a majority in Saturday’s election, raising the prospect of a minority NDP government if Leader David Eby can get the support of two Green legislators.

Manual recounts in two ridings could also play an important role in the outcome, which will not be known for about a week.

Weaver, who is no longer a member of the Greens, endorsed a Conservative candidate in his home riding.

He said Eby would be in a better position to negotiate if Furstenau, who lost her seat, stepped aside as party leader.

“I think Mr. Eby would be able to have fresh discussions with fresh new faces around the table, (after) four years of political sniping … between Sonia and the NDP in the B.C. legislature,” he said.

He said Furstenau’s loss put the two elected Greens in an awkward position because parties “need the leader in the legislature.”

Furstenau could resign as leader or one of the elected Greens could step down and let her run in a byelection in their riding, he said.

“They need to resolve that issue sooner rather than later,” he said.

The Green victories went to Rob Botterell in Saanich North and the Islands and Jeremy Valeriote in West Vancouver-Sea to Sky.

Neither Botterell nor Valeriote have held seats in the legislature before, Weaver noted.

“It’s not like in 2017 when, you know, I had been in the (legislature) for four years already,” Weaver said, adding that “the learning curve is steep.”

Sanjay Jeram, chair of undergraduate studies in political science at Simon Fraser University, said he doesn’t think it’ll be an “easygoing relationship between (the NDP and Greens) this time around.”

“I don’t know if Eby and Furstenau have the same relationship — or the potential to have the same relationship — as Horgan and Weaver did,” he said. “I think their demands will be a little more strict and it’ll be a little more of a cold alliance than it was in 2017 if they do form an alliance.”

Horgan and Weaver shook hands on a confidence-and-supply agreement before attending a rugby match, where they were spotted sitting together before the deal became public knowledge.

Eby said in his election-night speech that he had already reached out to Furstenau and suggested common “progressive values” between their parties.

Furstenau said in her concession speech that her party was poised to play a “pivotal role” in the legislature.

Botterell said in an election-night interview that he was “totally supportive of Sonia” and he would “do everything I can to support her and the path forward that she chooses to take because that’s her decision.”

The Green Party of Canada issued a news release Monday, congratulating the candidates on their victories, noting Valeriote’s win is the first time that a Green MLA has been elected outside of Vancouver Island.

“Now, like all British Columbians we await the final seat count to know which party will have the best chance to form government. Let’s hope that the Green caucus has a pivotal role,” the release said, echoing Furstenau’s turn of phrase.

The final results of the election won’t be known until at least next week.

Elections BC says manual recounts will be held on Oct. 26 to 28 in two ridings where NDP candidates led B.C. Conservatives by fewer than 100 votes after the initial count ended on Sunday.

The outcomes in Surrey City Centre and Juan de Fuca-Malahat could determine who forms government.

The election’s initial results have the NDP elected or leading in 46 ridings, and the B.C. Conservatives in 45, both short of the 47 majority mark in B.C.’s 93-seat legislature.

If the Conservatives win both of the recount ridings and win all other ridings where they lead, Rustad will win with a one-seat majority.

If the NDP holds onto at least one of the ridings where there are recounts, wins the other races it leads, and strikes a deal with the Greens, they would have enough numbers to form a minority government.

But another election could also be on the cards, since the winner will have to nominate a Speaker, reducing the government’s numbers in the legislature by one vote.

Elections BC says it will also be counting about 49,000 absentee and mail-in ballots from Oct. 26 to 28.

The NDP went into the election with 55 ridings, representing a comfortable majority in what was then an 87-seat legislature.

Jeram, with Simon Fraser University, said though the counts aren’t finalized, the Conservatives were the big winners in the election.

“They weren’t really a not much of a formal party until not that long ago, and to go from two per cent of the vote to winning 45 or more seats in the B.C. provincial election is just incredible,” he said in an interview Monday.

Jeram said people had expected Eby to call an election after he took over from John Horgan in 2022, and if he had, he doesn’t think there would have been the same result.

He said the B.C. Conservative’s popularity grew as a result of the decision of the BC Liberals to rebrand as BC United and later drop out.

“Had Eby called an election before that really shook out, and maybe especially before (Pierre) Poilievre, kind of really had the wind in his sails and started to grow, I think he could have won the majority for sure.”

He said he wasn’t surprised by the results of the election, saying polls were fairly accurate.

“Ultimately, it really was a result that we saw coming for a while, since the moment that BC United withdrew and put their support behind the conservatives, I think this was the outcome that was expected.”

— With files from Darryl Greer

This report by The Canadian Press was first published Oct. 21, 2024.

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