Canadian PM Announces February Budget

by Mike Godfrey, Tax-News.com, Washington

07 October 2002

Canadian Prime Minister, Jean Chretien announced on Thursday that the next federal budget will be introduced in February of next year.

However, according to media reports released immediately following the announcement, M. Chretien was less forthcoming when questioned as to whether recently unveiled health care and social programs will necessitate tax increases.

'We have reduced taxes by C$100 billion ($63 billion) over a period of five years,' the Prime Minister told reporters. 'Wait until the budget. The budget is coming in February and we intend to balance the books.'

Reuters reported last week that Finance Minister, John Manley has been similarly evasive on the subject of special tax hikes to fund the potentially expensive new initiatives.

However, he has confirmed that he will not be increasing the controversial goods and services tax, according to Reuters, stating in late September that he would 'rather jump off Parliament's Peace Tower' than increase the sales tax.

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