March 29, 2012
INTRODUCTION
On March 29, 2012, Finance Minister Jim Flaherty delivered his
2012-2013 budget titled "Jobs Growth and Long-term
Prosperity," in the House of Commons.
With modest new revenue measures and program spending cuts (only
2% of government spending), the government is counting on expected
economic growth to balance the budget. Flaherty announced a
projected deficit for the 2011-2012 fiscal year of $24.9 billion.
The deficit is projected to fall to $21.1 billion in 2012-2013 and
continue to decline until 2015-2016 when budgetary surpluses are
predicted to start.
In this budget there were no changes in personal or corporate
income tax rates.
Flaherty anticipates modest economic growth in Canada in the
near-term. The budget predicts growth rates of 2.1% for 2012 and
2.4% in 2013. Average annual growth over the next five years is
projected to be just 2.4%.
