At issue are what are known in accounting as “contingent liabilities.”
Contingent liabilities are recorded when government lawyers believe Canada is likely to lose in court and the claim has a dollar value attached to it, resulting in a strong probability of future payment, the parliamentary budget officer has said.
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The department won’t say which claims led the government to book $16.4 billion in liabilities.
AFAICT the money is being set aside because federal government lawyers expect future payouts on one of the thousand-ish ongoing legal disputes. So much of the money hasn’t reached them, but it probably will, depending on negotiations and rulings.
Agreed. I think it’s reasonable to ask why the number wasn’t included in the estimates earlier this year, but that has nothing to do with the claims themselves.
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AFAICT the money is being set aside because federal government lawyers expect future payouts on one of the thousand-ish ongoing legal disputes. So much of the money hasn’t reached them, but it probably will, depending on negotiations and rulings.
Ok, so it’s earmarked? If so, I don’t see the reason for this outrage, as that’s still the amount accounted for in explaining the deficit numbers.
Agreed. I think it’s reasonable to ask why the number wasn’t included in the estimates earlier this year, but that has nothing to do with the claims themselves.