Finance Minister Flaherty Meets with Economists in Advance of the Budget

On May 31^st, Minister of Finance Jim Flaherty met with 15 Canadian private sector economists to gather opinion on the economic future of our country. This is in order to make sure that the measures presented in the upcoming Federal budget are in line with expectations for the future. Mr. Flaherty last met with the economists in March in advance of the previous budget.

According the Department of Finance, the economic planning assumptions that were solidified at the March meeting still apply to the upcoming budget. "The June 6 budget will provide fiscal projections based on the March private sector forecastsî says Mr. Flaherty. "While our economy grew solidly in the first quarter of this year, the global economic recovery remains uncertain. The Next Phase of Canada's Economic Action Plan will ensure we stay at the forefront of economic growth and job creation while we work to return to budget balance by 2014ñ15.î

The Department of Finance has been relying on economists from the private sector to assist with planning since the federal budget of 1994. They provide insight for projections in areas such as inflation, GDP, and employment, to name a few. The average of their forecasts is used as a framework for economic assumptions used by the government. This strengthens the government's economic and fiscal forecasts by including an element of independence to the analysis.

The March 2011 survey of private sector forecasters included Bank of America Merrill Lynch, BMO Capital Markets, Caisse de dépÙt et placement du Québec, CIBC World Markets, The Conference Board of Canada, Desjardins, Deutsche Bank of Canada, IHS Global Insight, Laurentian Bank Securities, National Bank Financial Group, Royal Bank of Canada, Scotiabank, TD Bank Financial Group, UBS Securities Canada, and the University of Toronto (Policy and Economic Analysis Program).

ADDITIONAL EDUCATIONAL RESOURCES: Essential Tax Facts 2012 for the 2011 Tax Return