Solving the EI Conundrum

During their years as prime minister and finance minister, Jean Chrétien and Paul Martin have presided over a remarkable restoration of federal fiscal health. The federal budget for fiscal year 1993/94 showed a $42 billion deficit; this fiscal year, current indications are that the budget may reach a $7 billion surplus. The employment insurance (EI) program has made a major contribution to this turnaround. While EI premium revenues fell slightly short of program costs in 1993/94, premium collections in 1998/99 will likely exceed costs by about $7 billion.