Earlier this year, Canadian Finance Minister John Manley announced a sixth consecutive surplus in the federal budget and projected that the budget will continue to be balanced this year and next, despite slower-than-expected growth. The federal government is committed to following a prudent path for its budget planning. Canada is expected to have one of the lowest debt burdens in the G-7 this year.
Not only have we reduced the debt-to-GDP ratio, but we have paid down almost $ billion of federal debt. This has freed up about $ billion of resources every year for the federal government. The main point is that, while the initial work of fiscal consolidation is certainly difficult, it is necessary in order to enjoy the dividends later on.