Canada Budget 2016: Oil Poses Great Risk for Growth

The video discusses concerns about the budget, focusing on a $6 billion unallocated contingency fund, which constitutes 20% of the projected deficit. The conversation highlights the risks associated with this unallocated fund, especially if economic conditions do not meet expectations. Additionally, the video examines growth projections, noting the government's expectation of a 2.2% growth next year, which relies heavily on a significant increase in oil prices. The discussion raises questions about the feasibility of these projections and the potential impact on the deficit if oil prices do not rise as anticipated.

What percentage of the projected deficit does the unallocated contingency fund represent?

• 40%

• 10%

• 30%

• 20%

What is the expected growth rate for next year according to the government?

• 3.0%

• 1.4%

• 2.0%

• 2.2%

What is the current growth rate that everyone has been preparing for?

• 1.0%

• 1.4%

• 2.2%

• 2.0%

What is the expected increase in oil prices next year?

• From $30 to $40

• From $40 to $52

• From $60 to $70

• From $50 to $60

What is the risk associated with the expected 30% increase in oil prices?

• It will increase unemployment.

• It will decrease government revenue.

• It may not happen, affecting deficit projections.

• It may lead to inflation.