**Canadian Taxpayers Federation Urges Prime Minister Mark Carney to Focus on Reducing Debt, Not Redefining Capital Spending**
*OTTAWA, ON* — The Canadian Taxpayers Federation (CTF) is calling on Prime Minister Mark Carney to concentrate on reducing the national debt instead of distorting the financial picture by watering down the definition of capital spending, as highlighted by the Parliamentary Budget Officer (PBO).
The PBO’s analysis reveals that the government is inappropriately expanding the definition of capital spending, said Franco Terrazzano, CTF Federal Director. “The reality is taxpayers need to cut through Carney’s budget spin and look at one number: How fast is the debt going up?”
The Carney government recently announced a separation between operating and capital spending in its budget, along with new criteria outlining what qualifies as capital spending. However, the PBO found that Finance Canada’s expanded definition and categories stretch the scope of capital investment beyond the current treatment used in the Public Accounts of Canada.
The PBO added, “Based on our initial assessment, we find that the scope is overly expansive and exceeds international practice such as that adopted by the United Kingdom.”
“The government is acting fast and loose with the definition of capital,” Terrazzano stated. “Handing out corporate welfare shouldn’t be considered capital.”
Regardless of spending category, Terrazzano emphasized that more debt means more interest payments. “That’s what taxpayers need to focus on to hold the government accountable.”
The PBO’s *Economic and Fiscal Outlook* projects this year’s deficit to increase sharply to $68.5 billion. Debt interest charges are expected to cost taxpayers $55.3 billion this year. This means that paying interest on the federal debt will cost each Canadian about $1,300 in 2013 alone.
“The government is trying to muddy the water with its accounting nonsense,” said Terrazzano. “The government should stop focusing on cutting the numbers and instead focus on cutting the debt. Taxpayers will need to cut through all the accounting noise from the government and focus on one question: Is the debt going up or down?”
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**For more information or to schedule interviews, please contact:**
Franco Terrazzano
CTF Federal Director
Phone: 403-918-3532
Email: [email protected]
https://canadafreepress.com/article/171775
