Canada Set On Deficit Reduction Plan

by Mike Godfrey, Tax-News.com, Washington

31 August 2011

Canada's deficit reduction plan is an opportunity for modernization of public expenditure, the President of the Treasury Board has said, reaffirming the government's commitment to balancing the budget in three years.

Addressing the Whitehorse Chamber of Commerce, Tony Clement said the government has a clear mandate to "eliminate the deficit, keep taxes low and continue creating jobs for Canadians". The government's goal is to find ongoing savings of at least CAD4bn (USD4.08bn) by 2014-15.

To aid in this process, 67 organizations are reviewing their operating expenses, grants and contributions expenditures. However, the government has also pledged to ensure no cuts to major transfers, employment and other levels of government, and to keep up public debts payments. The government will release the results of this review as part of Budget 2012.

Clement said that: "Our deficit reduction action plan is an opportunity to modernize how we do business - to get government right and ensure the economy can continue to grow and create jobs, and that we continue to invest in the priorities of Canadians."

Clement also reaffirmed the government's commitment to adopting a balanced approach to ensuring responsible and strategic investments in keeping with the priorities of Canadians while continuing to eliminate the deficit.

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