Federal • $26-billion (deficit for 2012-13)
The March, 2012 budget initially projected a deficit of $21.1-billion. That estimate was revised to $26-billion in the November fiscal update.
Return to a balanced budget: 2015-16
It’s complicated. The Conservative 2011 election platform promised balanced books by 2014-15. The March, 2012 budget said 2015-16 and the November fiscal update said 2016-17. Finance Minister Jim Flaherty has since said the deficit will be erased by 2015-16.
Main challenges:
Low commodity prices, low inflation (which affects nominal GDP) and low growth are all conspiring to give Mr. Flaherty less revenue as he prepares a 2013 budget that is expected in late March.
Outlook:
The International Monetary Fund recently said Ottawa’s deficit targets are achievable. “A budgetary balance by 2015 is well within reach,” it said in a Feb. 14 report.
- Bill Curry
