We’ve got a provincial government in Newfoundland and Labrador that has been budgeting for years to spend more than it brought in.
Way back in the beginning, way before the oil money cut in suddenly and largely unexpectedly, Loyola Sullivan said that people should expect the Conservatives to run deficits annually of half a billion dollars or more. The logical implication of what he’d said in 2005 was that it might have been 2014 until the Conservatives balanced the budget.
Now to be fair, Sullivan was speaking about the magnitude of the provincial government;s financial problem as he and his colleagues found it in 2004. But at the same time, by 2005, we were also talking about how the Conservatives intended to run things themselves.
They were clearly not as concerned about public debt as they had been in 2003. Part of that might have had something to do with this idea they had of making a killing selling cheap electricity into the United States, but frankly, Sullivan’s forecast of a debt of about $17 billion – which the Conservatives delivered on – suggests they really had something else in mind.