Canada has run a budgetary surplus at the federal government level for nine consecutive years. Because of this record, the federal government's public debt-to-GDP ratio has fallen from a peak of over 70 per cent to about 35 per cent now, and is on track to reach just 25 per cent in 2013-14.
In Chile, the government has had great success since 2000 with its structural surplus rule. This policy has proven to be an effective stabilizer throughout the business cycle and has helped the country maintain an enviable debt position. A fiscal policy that delivers public debt sustainability is particularly useful in today's economic climate, because it gives governments the flexibility to respond to evolving circumstances.