The Honourable Jim Flaherty, Minister of Finance, today released the Annual Financial Report of the Government of Canada for 2012–13. The report shows the continued downward track of Canada’s annual deficit. In 2012–13, the deficit fell to $18.9 billion. This was down by more than one-quarter ($7.4 billion) from the deficit of $26.3 billion in 2011–12 and down by nearly two-thirds from the $55.6-billion deficit recorded in 2009–10.
The Government of Canada’s responsible spending of taxpayers’ dollars played an important part in the results for 2012–13, with direct program expenses falling by 1.2 per cent from the prior year and by 3.8 per cent from 2010–11.
“Our Government is focused on: helping create jobs and opportunities for Canadians; supporting hard-working families; helping keep our families and communities safe; and putting Canada first,” said Minister Flaherty. “Our Government’s continued efforts to ensure that every tax dollar is spent as efficiently as possible and that wasteful spending is eliminated are keeping Canada on track to balance the budget in 2015 without raising taxes or reducing important transfers to persons or to other levels of government.”
As reported by the Organisation for Economic Co-operation and Development (OECD), Canada’s total government net debt-to-GDP (gross domestic product) ratio, which includes the net debt of the federal, provincial/territorial and local governments, as well as the net assets held in the Canada Pension Plan and Québec Pension Plan, stood at 34.5 per cent in 2012. This is by far the lowest level among Group of Seven (G-7) countries, which the OECD expects will record an average net debt of 87.0 per cent in the same year.
“Solid economic and fiscal fundamentals have ensured that Canada remains one of the few countries in the world to continually receive the highest possible credit ratings from all the major credit rating agencies. However, we are not immune to the effects of slow economic growth globally. We will build on our record by continuing to keep taxes low, work to expand trade and keep Canada on track for a balanced budget in 2015,” said Minister Flaherty.
Marie Prentice
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
