2 years ago
Canada backtracks on pledge to balance budget by 2014
Wednesday, 09 November 2011 | http://www.nerve.in/news:253500431948 | channel: Americas
"To combat the deteriorating economy, Flaherty announced a small cut in the tax that employers and workers pay for unemployment insurance. He announced an extension on 'work sharing', which gives employees the ability to work part-time while drawing a portion of unemployment benefits. "
 
Ottawa, Nov 9 - The Canadian government will not be able to keep its election promise to balance the budget in two years, Finance Minister Jim Flaherty has said.

Flaherty and Canada's Prime Minister Stephen Harper said during last spring's federal election campaign that Canada was on the verge of a balanced national budget. Now, Flaherty expects to run a deficit until 2015.

The announcement Tuesday came after months of criticism by Harper and Flaherty of European governments that are facing sovereign debt crises and trying to implement austerity measures that are often unpopular with their citizens, reported Xinhua.

Flaherty, whose government is trying to reduce costs by cutting the federal bureaucracy and reduce government waste, blamed the reduced federal revenues on a slowdown of economic activity caused by the European sovereign debt crisis.

'Canada's key economic threats are not of our own making,' Flaherty said to the Calgary, Alberta, Chamber of Commerce, a meeting of business leaders in a city where Flaherty and Harper's Conservative Party have strong support.

Flaherty promised his audience that Canadians can count on economic stability.

'Countries, just like individuals, do not stumble into prosperity. They set out a plan and stick to it, so that they are fully capable of seizing opportunity when misfortune hits, instead of merely being overwhelmed by it,' Flaherty said.

'Our country currently possesses something that many, many nations today consider precious and exceedingly rare. And no, I'm not talking about oil. It's stability.'

To combat the deteriorating economy, Flaherty announced a small cut in the tax that employers and workers pay for unemployment insurance. He announced an extension on 'work sharing', which gives employees the ability to work part-time while drawing a portion of unemployment benefits.

Flaherty's economic update came just a few days after his government announced a loss of 54,000 jobs last month, most of them full-time positions in manufacturing.

Read more on:
 FINANCE MINISTER (10251 views)
 CANADA (8831 views)
 CALGARY (3377 views)
 ALBERTA (3196 views)
 STEPHEN (3651 views)
 CANADIAN GOVERNMENT (2833 views)
 STEPHEN HARPER (2685 views)
 AUDI (4021 views)
 NIST (4891 views)
 UNEMPLOYMENT (1841 views)
 AUSTERITY (1211 views)
 CANADIAN (1601 views)
 PRIME MINISTER STEPHEN HARPER (381 views)
 UNEMPLOYMENT BENEFIT (161 views)
 

PERMALINK

http://www.nerve.in/news:253500431948
You can quote the permanent link above for a direct link to the story. We do not archive or expire our news stories.


STORY OPTIONS
  Email this story to a friend
  XML feed for Americas


 
COPYRIGHTS INFORMATION
All rights reserved for news content. Reproduction, storage or redistribution of Nerve content and articles in any medium is strictly prohibited.
Contact Nerve Staff for any feedback, corrections and omissions in news stories.