Canada’s budget projects almost C$45 billion ($41 billion) in surpluses over four years, giving Prime Minister Stephen Harper a war chest for increased spending and tax cuts ahead of next year’s election campaign.
Canadian Finance Minister Jim Flaherty ramped up efforts to return the country to surplus in a budget that raises taxes on cigarettes and cuts benefits to retired government workers while providing more aid for carmakers.
Canadian Finance Minister Jim Flaherty will release a budget today that will keep the country on path for surpluses starting next year, and set the stage for a political battle over how to use the coming fiscal room.
Canadian Finance Minister Jim Flaherty said his next budget on Feb. 11 will show a surplus of just under C$4 billion ($3.6 billion) in the fiscal year starting April 2015 and said policy makers are not attempting to quicken a decline in the nation’s currency.
Canada’s December inflation rate accelerated less than economists forecast, leaving it near the bottom of the central bank’s target band and reinforcing policy- maker warnings that price gains will be sluggish.
Greece’s fiscal crisis may improve the euro’s long-run viability if it forces nations using the currency to deepen their fiscal integration, according to Craig Wright, Royal Bank of Canada’s chief economist.