Canada's Finance Minister Signals Restraint

by Mike Godfrey, Tax-News.com, Washington

25 November 2010

Canada’s Minister of Finance, Jim Flaherty, has said that Budget 2011, the next phase of the country’s Economic Action Plan, will maintain the government’s focus on the economy, jobs and growth, and returning Canada’s books to balance.

Speaking to the Oakville, Ontario, Chamber of Commerce, Minister Flaherty stated: “This is not the time for risky new spending that will increase deficits and raise taxes. Budget 2011 will not include significant new spending.”

During his speech, the Minister also highlighted the success of Canada’s Economic Action Plan.

“The Action Plan is among the largest stimulus packages in the world on a per capita basis, and it has benefitted Canadians across the country. Over 425,000 more Canadians are working today than in July 2009, growth has returned to the economy, and Canada is leading the industrialized world in exiting the recession.”

“Now, as our economic recovery takes hold, it is time to enter the next phase of the Economic Action Plan,” the Minister said. He added that the government will now focus on laying the foundation for long-term, sustainable growth.

Minister Flaherty stressed that the government’s priorities are fiscal sustainability and returning to balanced budgets over the medium-term. This will be achieved by ending stimulus as the economy recovers; restraining growth in government spending through targeted measures; and undertaking a comprehensive review of government operations and costs.

“Canada is emerging from the recession even stronger than it entered, with a more competitive tax system encouraging higher levels of business investment, renewed infrastructure and skills, a significant tariff advantage, and a more prominent voice as a global financial sector leader,” said Flaherty.

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