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Finance Minister Jim Flaherty photographed during a an interview in his Parliament Hill office on Jan. 30, 2013, in Ottawa.
Finance Minister Jim Flaherty photographed during a an interview in his Parliament Hill office on Jan. 30, 2013, in Ottawa.
(Dave Chan For The Globe and Mail)

Why Finance is going back to basics for the 2013 budget

Officials at Finance Canada – and economists on Bay Street – are asking themselves some pretty fundamental questions.

Does deficit spending boost or hurt economic growth? Do spending cuts hurt or help the economy?

As crunch time approaches on the 2013 federal budget, there is a lot weighing on getting these answers right.