January 26, 2011 / 3:54 PM / in 7 years

Canada's Flaherty sees moderate growth, tax cuts

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty said on Wednesday he expects more moderate economic growth for the country and said the government wants to make further cuts in personal income taxes eventually.

“We’ve done some tax reductions on personal income tax, and quite frankly, we would like to do more over time,” Flaherty said.

“The expectation is we’ll have continued moderate economic growth and continued tax reductions over time.”

The ruling minority Conservative government is set to unveil its budget soon but needs the support of at least one of the three opposition parties to pass it. If all three vote against the plan, the government would fall and an election would be called.

The three parties have given mixed signals on whether they would support the budget. Liberal leader Michael Ignatieff has warned the main opposition party will reject the plan if it retains corporate tax cuts that went into effect at the start of the year.

Speaking at a manufacturing plant in Oshawa, Ontario, Flaherty also said the government expects to sell its shares in General Motors and Chrysler “over time.”

“We don’t want to disrupt the market by acting abruptly but over time we intend to get out of General Motors and Chrysler, as well,” said Flaherty.

Reporting by Ottawa bureau; Editing by Frank McGurty

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