When Canada’s annual budget deficit came in bigger than expected at $26.2 billion recently, the news didn’t spark a sell-off in the markets or an emergency debate in parliament. But that doesn’t mean Canadians should be complacent about balancing the budget.
When Ben Bernanke, the chairman of the United States Federal Reserve is nervously warning Congress that they face “a massive fiscal cliff of large spending cuts and tax increases” this coming January 1st, while Canadians shouldn’t confuse what’s going on south of the border with Ottawa’s dilemma, the need for more cuts in Canada is certainly real.
