The economy took centre stage on the election trail Monday as Conservative Leader Stephen Harper delighted in an expected federal surplus and the opposition leaders insisted the extra revenue came at the cost of important spending.
Fiscal year-end figures released Monday morning revealed the country posted a surprise $1.9-billion surplus in 2014-15 instead of an expected deficit.
An energetic Harper told Conservative supporters in Kamloops, B.C. Monday that the surplus "incredibly good news" and a sign that is party's economic plan is working.
"We have an economy that is growing, we have a budget that is in balance, a slight surplus, and taxes going down," Harper told supporters.
He predicted the country would see another surplus this year, noting the finance department's news last month that the country saw a $5-billion surplus in the April-June quarter.
"All of the figures going forward indicate the economy is now growing strong in most sectors… so I see zero to little risk that we will have anything but a surplus for the second year in a row based on the trajectory we are on," he said.
He added that the opposition parties will fund their promises through "deficits and tax hikes."
"Friends, that's a recipe for disaster. We have to stay on the course we are on," he said.
Earlier, Liberal Leader Justin Trudeau reacted to the figures by suggesting the surprise surplus was a result of the Conservatives' decision to cut spending in time for the election.
He said according to the last report of the parliamentary budget officer, Canada is back in a deficit.
"Mr. Harper has put us into deficit this year. As for last year's numbers, we know and we saw Mr. Harper underspending and making cuts to Veterans Affairs, to Aboriginal Affairs, to seniors, in the billions of dollars so he could balance the books in time for this election," Trudeau told supporters in Toronto.
"It was a political goal that actually has helped us to slide into the recession that Canada is the only G7 country to be in right now."
Speaking to CTV’s Power Play on Monday, former PBO Kevin Page said he suspects Trudeau’s theory about program spending cuts is right, but that Canadians won’t know for sure until the departmental spending details are released.
“I think with freezes on spending, like Mr. Trudeau talked about, they’ve been able to bring us back to balance in 2014-15,” said Page.
Trudeau's Liberals have promised to place their focus on growing the economy through investments in housing and public transit even if it means modest deficits, vowing to balance the books by 2019.
NDP Leader Thomas Mulcair called the latest finance department numbers "good news for Canadians," saying they would allow the NDP to "start off on the right foot" if the party forms government on Oct. 19.
He added that Trudeau's Liberals are taking the wrong approach with plans for immediate spending. He called that "short-term thinking" that would place "a massive debt on the backs of Canadians."
Conservative candidate for Parry Sound-Muskoka and Treasury Board president Tony Clement told CTV News Channel the government was able to post the 2014-15 surplus even while "maintaining or increasing transfer payments to individuals who need it, whether it's veterans or seniors or families through our tax cuts."
Clement said these latest figures show that the "ballot question" that is emerging is about which party is best placed to protect the economy.
The final official numbers for the fiscal year ending March 31 are normally not released until late September or early October, but Finance Minister Joe Oliver sought and received parliamentary approval to release the figures during the election campaign.
Their release comes just three days before a scheduled leaders' debate that will be centred on the topic of the economy.
2015 a different ball game
While Page said the surplus is “real,” he also pointed out that it is small and not necessarily a sign of more balanced books this year.
“We have a very different economy in 2015 than we did have in 2014 when we balanced the books. The economy’s gone sideways,” said Page.
“Manufacturing, mining, energy, utilities, agriculture, it’s all shrinking … That’s a big issue going forward for the election campaign.”
