The Federal Government s Debt Essay - 883 Words

The federal government’s debt is the total value of all outstanding government bonds and the accumulation of past deficits. Before the federal government had assumed the liabilities of CMHC which was $236,708 million dollars as of September 30, 2015 and the liabilities of commercial banks, growth in Canada’s Gross Domestic Product (GDP) had been forecasted to be low due to continual fall in oil prices in the last six months which has lead to a significant depreciation in the value of the Canadian dollar and considerable declines in the federal government revenue. †¢ The Department of Finance had estimated that a one per cent fall in Real GDP growth could lead to a decline in government revenues of about $5.3 billion dollars. Government expenditures have been expected to be a moderate $0.8 billion which would result in a net federal deficit of $4.8 billion dollars over the next year. With the accumulation of CMHC and the commercial banks liabilities the Canadian federal government’s debt to GDP ratio is now at an all time high. †¢ In its 2014 Budget, the government of Ontario announced its plans to invest more than $130 billion in infrastructure over the next 10 years. This plan was expected to support over 110, 000 jobs per year and to reduce traffic congestion in the Greater Toronto and Hamilton Area that costs the province between $6 to $11 billion dollars per year. †¢ Current and potential creditors are concerned about the risk of the federal government defaulting on itsShow MoreRelatedThe National Government Of A Country Essay1622 Words   |  7 PagesThe National Government of a country consists of various characteristics, procedures, positions, and beliefs, that create a great comparison to such traits of a complex business. 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The government debt has had itsRead MoreThe National Government Of A Country Essay1302 Words   |  6 PagesThe National Government of a country can be immensely compared to a complex business. Whether it s developing a nation s annual budget, analyzing deficits or surpluses, accumulating government liabilities, or outsourcing to investors, the governments of all nations have and will continue to run like any other successful business. In the case of a country, the economic, societal, foreign, military, and national strengths, are relying on the influence of a business mentality throughout the nations’Read MoreReducing The Amount Of Foreign Aid Essay1416 Words   |  6 PagesStates has experienced an unbalanced budget which has spiraled out of control and left the government and its citizens in trillions of dollars in debt. Even with the unfathomable amount of money owed, it is still possible for the United States to clear the debt, and regain a surplus budget once again. 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