OTTAWA: Canada is on track to meet or slightly beat its deficit projections for this year as long as economic growth remains the same, according to data announced Friday.
For the first six months of the 2011-12 fiscal year, the budgetary deficit stood at CAN$13.2 billion, down from CAN$17.4 billion reported in the same period last year, the finance department said.
It cited increased income tax revenues and lower program expenses for the improvement in its fiscal position.
Earlier this month, the deficit projection for this year was revised to CAN$31.0 billion, from $36.2 billion forecast in the last budget in June and a record $55.6 billion in fiscal 2009-2010 during the recession.
However, the finance department also said it would put off balancing the budget by one year to fiscal 2015-2016 as global economic growth slowed.
Canada's economy performed much better than other Group of Seven industrialized nations during the global economic downturn, but its outlook weakened in recent months largely due to external woes.
The government of the G7 country had pledged during an election campaign in May to return to a budgetary surplus by the fiscal year ending March 2015, but is now aiming for a small surplus of $0.6 billion the following year.
Finance Minister Jim Flaherty said in a speech to the Canadian Club of Toronto on Friday, "Global economic angst will not sidetrack us from our ultimate goal of balanced budgets."
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