Canada says no new big spending in next budget

Mon Nov 22, 2010 2:49pm EST
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By Jennifer Kwan

OAKVILLE, Ontario (Reuters) - Canadian Finance Minister Jim Flaherty reiterated on Monday that his next budget will contain no big new spending plans as government focuses on getting the books back into the black.

Flaherty, who made similar comments last week when he launched pre-budget consultations, also said he is not going to raise taxes on business, large or small and will follow through on planned tax cuts for employers.

"We will not make significant new government spending commitments this year that would trigger bigger deficits and higher taxes," he told a business audience.

"We simply cannot afford to risk the economic recovery ... by running large deficits longer than necessary," he said.

Flaherty said on Friday that now was "no time for risky new spending schemes" and that the 2011-2012 budget would stay the course.

The finance minister on Monday repeated the government's plan to balance its budget by the 2015-16 fiscal year.

He also reiterated that the government will wind down its two-year stimulus plan by the end of March and restrain government spending growth, partly through a comprehensive review of operations and costs.

(Editing by Jeffrey Hodgson)