The federal government is once again awash in cash thanks to a much stronger than expected economy.
The Finance Department says the budget surplus for fiscal 2007-08 will be much higher than projected.
In March, Finance Minister Jim Flaherty estimated the surplus would reach $3 billion.
However, the surplus had already reached $6.4 billion in the first three months of the fiscal year, from the beginning of April through the end of June.
In three months the surplus is more than double what Flaherty predicted for the entire year. I realize the economy is probably doing better than anticipated, but isn't it somewhat outrageous for the Minister of Finance to have a surplus potentially 8X the forecast? These aren't Paul Martin numbers, Flaherty is either incompetent or a complete fraud.
Let's not forget that the last budget was an election budget, and if Flaherty had concluded he could afford a big tax cut he would have done it. By the looks of things, Canadians could have a nice income tax cut, not to mention the contentious issue of income-splitting, which Flaherty nixed, on perceived fiscal grounds. Objectively, there is something amiss, when your budget predictions are shattered in the first three months, nevermind the fiscal year.