Opppppsssss.................

I think I have to learn how to read PROPERLY, or get a new pair of glasses.

As I browsed through the Economic and Fiscal Update yesterday, I missed a very important point. Quoting the press release:

The plan, unveiled along with Minister Flaherty’s Economic and Fiscal Update, features a new national objective to eliminate Canada’s total government net debt in less than a generation and further reduce taxes for all Canadians.

Now, the "net debt" is not exactly the "real national debt" (i.e. currently sitting at about $500 billion) that a lot of us preceive. From Finance Canada, and I quote:

net federal debt (dette fédérale nette)

The accumulated total of all past federal deficits and surpluses since Confederation. The net federal debt is the gross federal debt minus the federal government's financial assets such as loans, investments and foreign exchange accounts.

So, the government is not exactly planning to eliminate the $500 billion debt by 2021, because the net debt will account for other assets (i.e. money in the Canada Pension Plan, foreign reserves, federal buildings and properties, etc.) to offset the liabilities.

On the other hand, it is still nice to see the plan for lowering the debt-to-GDP ratio, to 25%, will be two years ahead of Budget 2005.

I was a bit "shocked" yesterday when I thought that Canada will be debt-free before I do. But now, I don't think that will be the case. That gave me a needed "morale boost" during the day.

Oh well, I still give the plan a "B+".

......and of course, I need to enroll myself into a "learn-how-to-read-properly" class.