this post was submitted on 18 Dec 2024
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[–] sbv@sh.itjust.works 2 points 3 days ago (1 children)

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.

...

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.

[–] Showroom7561@lemmy.ca 2 points 2 days ago (1 children)

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.

[–] sbv@sh.itjust.works 2 points 2 days ago

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.