Abstract:

The Alternative Federal Budget (AFB) project, coordinated by the Canadian Centre for Policy Alternatives, released its Economic and Fiscal Update. The report, contrary to Minister Manley's warnings of a shrinking surplus, forecasts a combined surplus of $27.9 billion this year and next. It also notes the AFB's remarkably accurate record of forecasting federal surpluses over the last three years - $40 billion, compared with the actual cumulative surplus of $39.7 billion. This compares with the grossly inaccurate government estimate of $7.5 billion over the last three years.