OTTAWA (Reuters) - Canada’s stimulus package is structured in such a way that the country should easily be able to erase its budget deficit two years after the recession ends, Prime Minister Stephen Harper said on Thursday.
Ottawa says it will run a C$50 billion deficit ($43 billion) this year alone, in large part because of the two-year stimulus package. Harper said most of the spending was a one-off and would not reoccur after the 2010-11 fiscal year.
“If you take out the one-time spending, we have a deficit of only about 1-1/2 percent of GDP and we should easily recover from that in the two years following the recession,” he told CTV television.
Reporting by David Ljunggren; editing by Rob Wilson