Ottawa, March 6, 2009
2009-025
The Honourable Jim Flaherty, Minister of Finance, today tabled in Parliament the Debt Management Report for 2007–08, noting that demand for Government of Canada securities remains strong because of Canada’s fiscal advantage.
"By reducing debt in good times and carefully managing spending, the Government has been able to put in place measures to support the economy without putting at risk the country’s long-run fiscal position," said Minister Flaherty.
In 2007–08, the federal debt, or accumulated deficit, was reduced by $9.7 billion to $457.6 billion, down $105.2 billion from its peak in 1996–97.
Public debt charges decreased by $0.6 billion, or 1.8 per cent, to $33.3 billion in 2007–08, due to a decline in the stock of market debt and a lower average effective interest rate on that stock.
The significant debt reduction to date has not only allowed the Government to support the economy during these difficult economic times, it also benefits Canadians and the Canadian economy directly by helping to keep interest rates low.
The Debt Management Report notes that developments in financial markets created a very strong demand for government securities, reflecting a flight to quality in turn caused by difficult global credit conditions.
The Debt Management Report can be viewed free of charge on the Department of Finance website. http://www.fin.gc.ca/dtman/2007-2008/dmr08-eng.asp
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For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
