Ottawa flush with Extra Cash

Dale Orr, an economist at Global Insight, said he expects the surplus for 2004-05 to be more than $8-billion - including the government's usual $3-billion contingency reserve -- or at least $5-billion more than what was forecast in the February budget.

'I think another healthy surplus is likely,' said Ted Carmichael, chief economist at J.P. Morgan Securities Canada Inc.

Another year in the black will mean that the Liberal government will be able to post its eighth consecutive surplus this fall when the final numbers are released. A big surplus will also mean, however, another year where the government's fiscal forecast missed the mark. Unlike the previous six, last year's surplus created a political problem for the Liberals, as critics accused the government of intentionally low-balling its estimates.

Mr. Carmichael said he also wouldn't be surprised if the surplus is as high as $8-billion. Other economists said they wouldn't offer specific forecasts on the size of the surplus, but that government revenue clearly benefited from a stronger-than-expected economy.

Mr. Prime Minister: Please, please, please direct this surplus to city infrastructure projects and debt repayments!