Bloomberg News

Flaherty Records Smaller 2010-11 Deficit, May Add Stimulus

October 12, 2011

(Updates with Flaherty comments starting in first paragraph.)

Oct. 12 (Bloomberg) -- Canada’s budget deficit was a smaller-than-forecast C$33.4 billion ($32.9 billion) in the year ended March 31, Finance Minister Jim Flaherty said, adding he may increase stimulus if the global recovery falters.

The figure for the last fiscal year was C$2.8 billion less than predicted in the June budget because revenue was higher than expected while spending was lower, according the finance department’s annual report posted on its website today. About half of the deficit came from stimulus programs that the government has wound down, the report said.

“We will continue to carefully monitor the economy and will remain flexible and pragmatic in responding to any material deterioration in global economic conditions,” Flaherty said in a summary of the annual report posted on the department’s website today. “We are exercising fiscal responsibility and we are urging other countries around the world to demonstrate the same discipline.”

Flaherty has said the government plans to balance the budget by the year beginning April 2014 through government spending cuts of up to C$4 billion annually and closing tax loopholes. Canada projects a deficit of C$32.3 billion this year.

--Editors: Paul Badertscher, Christopher Wellisz

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Paul Badertscher at pbadertscher@bloomberg.net


Coke's Big Fat Problem
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus