Monday, March 26, 2012
The Royal is predicting that the federal deficit is $11 billion less than projected. The economy is growing and the deficit is falling. We could in balance 2 years early. Excellent news. The government still needs to cut a lot of government waste and start paying off Canada's huge accumulated debt. A new report from one of Canada's largest banks says the federal government's balance sheet is in better shape than previously projected. A Royal Bank analysis says that Ottawa's deficit for the current fiscal year could come in as low as $20 billion, well below the $31 billion calculated by Ottawa in November. The good news for the government comes just days before Finance Minister Jim Flaherty delivers the latest federal budget. The projection is based on the three-quarters worth of the year's financial data. It shows government revenues coming in above expectations, while expenses have been well below. If the pattern holds true, it could put Flaherty ahead of schedule for eliminating the deficit in 2016-17. RBC chief economist Craig Wright says it could shave off as much as two years from Flaherty's most recent projections.