The Annual Financial Report of the Government of Canada for 2010–11, which shows a 40-per-cent reduction in the deficit from 2009–10. The deficit was also $2.8 billion lower than forecast in the June 2011 budget due to higher revenues and lower program expenses than forecast.
“We are exercising fiscal responsibility and we are urging other countries around the world to demonstrate the same discipline,” said Minister Flaherty, who is preparing to attend Group of Twenty (G-20) meetings in Europe to discuss risks to the global economy.
“Canada’s net debt-to-GDP (gross domestic product) ratio is the lowest among G-7 countries, and this report shows we are making solid progress toward our goal of returning to budget balance,” he said.
The Government posted a budgetary deficit of $33.4 billion for the fiscal year ended March 31, 2011, compared to a budgetary deficit of $55.6 billion in 2009–10. Roughly half of the deficit was due to remaining temporary stimulus actions taken under the first phase of Canada’s Economic Action Plan.
“Going forward, we will continue to carefully monitor the economy and will remain flexible and pragmatic in responding to any material deterioration in global economic conditions,” said Minister Flaherty. “At the same time, our Government will focus on creating the right conditions for long-term prosperity, which means returning to budget balance in the medium term and implementing the next phase of the Economic Action Plan.”