🚀 go-pugleaf

There are several misconceptions going on here in this thread.

1.) Debt payments are not part of the budget that is "Balanced". It is 
part of a debt repayment schedule which has nothing to do with operating 
budget.

2.) Budgets are not revenues mines expenses, they are planned revenues 
and planned expenses.  That's why they are called budget.  What actually 
happens is a variance.

3.) We could have a balanced budget and still have to borrow billions of 
dollars.  That is because the budget we are talking about is the current 
budget.

4.) The budget does not count infrastructure expenditures which can be 
capitalized to the balance sheet and have a long term benefit to the 
province.

 - - - - - - - - - - 

It is a common misconception that when the budget is balanced, the 
government does not have to borrow money.  And likewise, we could be 
running a deficit and we could also be paying down debt.  

I could post all the accounting reasons but it may be pointless now.

 - - - - - - - - - -

The only thing that is more misunderstood than government finances is the 
concept of Deferred Income Tax on corporation balance sheets!

Darren Downs.