What kind of mess could we be in?

Think about it: Canada is already in deficit, and cost over runs on the F-35s now total $10 billion more than the Conservatives originally told us.  The figure on the F-35s has gone up from $16 billion to $25 billion, an increase of 62.5%. They cite accounting differences, but what kind of accountant would be off by 62.5%? Personally, I would be pretty mad if my accountant told me that my tax bill was only $1600, then I got a bill from the feds for $2500.

But seriously, a 62.5% “accounting error” could mean some serious problems for Canada:

  • If the same type of error is applied to the deficit, the deficit in 2012 could total: $34.2875 billion instead of the projected $21.1 billion.
  • If the error applies to revenue, it could mean that we are only taking in $159.375 billion in revenue this year instead of the projected $255 billion. This would mean (provided expenses remain unchanged) a deficit of $116.825 billion.
  • If the error applies to expenditures, it means we could be spending $448.66 billion instead of the projected $276.1. Provided projected revenues are accurate, this would mean a deficit of $193.66 billion.
  • BUT IF BOTH REVENUE AND EXPENDITURES WERE OFF BY 62.5%, THIS WOULD MEAN A BUDGET DEFICIT OF  $289.285 BILLION
I’m not saying that the budget is off anywhere by 62.5%, but if they’re off in one department, the likelihood that they could be off somewhere else is heightened.My point is that no matter how they try to dress it up, any kind of accounting error is unacceptable, especially one that increases costs by 62.5%. Depending on where the error is, it can lead to quite a different financial picture.
Advertisements
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: