The recent indicators point to a slower pace of economic activity and the Tory government is about to
embark on Austerity Mark II, in nominal terms exactly the same level of cuts and tax increases as the # 37 billion George Osborne announced in 2010.
If we compare operating spending by municipalities to GDP, which is a broad measure of ability to pay, it remains within historical averages of close to 3 % of GDP.  In 2012, operating spending by all municipalities in Canada amounted to just 3.1 % of GDP, the same that it was twenty years ago, and down from the 3.3 % reached in 2009 during the depths of the recession.  This ratio was higher during the recession because GDP had dropped and governments sensibly
embarked on stimulus spending to prevent a depression. This was before their misguided adventures in
austerity (which presumably the CFIB supports, but have caused devastation to small businesses in countries elsewhere).