November 19, 2010 / 4:25 PM / in 7 years

Canada says no big new spending in next budget

TORONTO (Reuters) - Canada’s next budget will contain no big new spending plans as the country emerges from tough economic times, Finance Minister Jim Flaherty said on Friday.

“This is not the time for risky new spending schemes that will increase deficits and raise taxes,” Flaherty told reporters as he began consultations ahead of the 2011-12 budget, expected early next year.

“This is a budget where our intention is to stay the course -- no big new spending plans. I think Canadians expect us to be a fiscally conservative, responsible government, as we have been,” he said.

Flaherty said the government will continue to focus on securing the recovery and returning to balanced budgets.

“The Canadian economy is on the right track, but the global recovery is fragile,” he said.

Canada recently predicted it will balance its budget by the 2015-16 fiscal year after posting a record deficit for 2009-10, but it has warned that the shaky global recovery could undermine those forecasts and erode tax revenues.

Ireland’s debt crisis has also been a recent hotspot unnerving global financial markets, but Flaherty said on Friday that Ireland’s problems are being dealt with in an expeditious way. A multibillion-euro bailout plan is expected to be unveiled next week [ID:nLDE6AI0QG].

“Things are progressing in an orderly way and that is important ... so we don’t have financial sector disruption” he said.

“We are all concerned that this matter be dealt with in an expeditious way ... and it is being dealt with in an expeditious way.”

Additional writing by Jeffrey Hodgson

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