June 25, 2009 / 7:00 PM / in 8 years

Harper sees relatively quick exit from deficit

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.

<p>Prime Minister Stephen Harper announces the creation of a national immigration museum during a speech at Pier 21 in Halifax, Nova Scotia June 25, 2009. REUTERS/Paul Darrow</p>

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.

($1=$1.16 Canadian)

Reporting by David Ljunggren; editing by Rob Wilson

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