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USDCAD, Canadian Dollar News
Canadian government cuts recession stimulus spending
The Canadian government, confident that the recession that gripped Canada in the wake of the Y 2008 US bank collapse has ended, has begun scaling back its deficits and plans to balance its books by Y 2015, Finance Minister Jim Flaherty announced Tuesday afternoon.
The Canadian government faces important parliamentary votes on the budget. If the governing Conservatives, who do not hold a majority of seats in the House of Commons, lose any of these votes, Canada will be plunged into an unplanned national election.
“Our government will build in the success of our stimulus plan, ” Flaherty said as he tabled the budget in the Canadian parliament.
“As the private sector moves ahead as the engine of growth and job creation, our government will foster the right conditions for long-term economic prosperity, while staying on track to return to balance in the immediate term,” he added.
The government expects higher commodity prices, and the revival of the US economy to aid the recovery of Canada’s economy. But, the problems arising from the recent Japanese earthquake and tsunami, along with the sovereign debt crisis in some EU countries, could hold Canada’s economy back or even drag it down.
Nevertheless the government is winding down its job creation infrastructure stimulus program. After spending approximately Ca$6B (US$6.12B) in F-Y 2009 and 2010, it will end the program this year.
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