OTTAWA, March 21 (Reuters) – Canada’s Conservative
government pledged on Thursday to close tax loopholes and curb
spending to erase its budget deficit in time for the 2015
election, even as it found new cash for infrastructure spending
and extended a manufacturing tax credit.
The projected deficit in the fiscal year ending March 31 is
roughly in line with Ottawa’s previous forecast in November, at
C$25.9 billion ($25.4 billion). The deficit would be about 1.4
percent of the size of the economy, compared to about 5.6
percent for the U.S. deficit.
OTTAWA, March 19 (Reuters) – Canada’s hard-hit manufacturers
failed to bounce back in January after a dismal year-end
performance, an early sign that the economy may continue to
stumble in early 2013, partially offset by more upbeat wholesale
activity in the month.
Factory sales slipped 0.2 percent in the month due to weak
production in the volatile aerospace industry as well as in the
auto and energy industries, Statistics Canada said on Tuesday.
OTTAWA, March 18 (Reuters) – A Canadian government measure
allowing hard-hit manufacturers to write off investments more
quickly has been a success, Industry Minister Christian Paradis
said on Monday, but he could not guarantee the upcoming federal
budget would extend the measure.
Ottawa first introduced the accelerated capital cost
allowance in 2007 to help manufacturers hit by the strong
OTTAWA, March 18 (Reuters) – The Canadian government’s
budget on Thursday will grapple with how to compensate for a
C$2.1 billion ($2.06 billion) drop in revenues, a government
official said on Monday.
The official, who declined to be named, said the C$2.1
billion figure is based on a cut to a 2013 government forecast
for nominal gross domestic product to 3.3 percent from an
earlier forecast 4 percent.
OTTAWA (Reuters) – The government’s steely determination to balance Canada’s budget by 2015 could break an economy that is already showing signs of strain, as Ottawa seeks to rebuild a reputation for prudence that made it the envy of the industrialized world.
The 2013-14 federal budget, due later this month, is set to reinforce the government’s message that the deficit will be eliminated by 2015, an election year, and it will include what Finance Minister Jim Flaherty called “more sacrifices” from various ministries in the form of spending cuts.
OTTAWA, March 8 (Reuters) – Private sector economists have
cut their growth forecasts for the Canadian economy in 2013 due
to volatile market conditions in the United States and Europe,
Finance Minister Jim Flaherty said on Friday.
Flaherty, speaking to reporters after meeting the
economists, did not give precise figures. Ottawa’s budget,
expected later this month, is based on projections from around a
dozen private sector economists.
OTTAWA, March 8 (Reuters) – Canada’s job market once again
defied expectations to post strong gains in February, lending
some credibility to predictions of an economic comeback this
year after the slowest two quarters of growth since the 2008-09
Employment rebounded from January’s losses with the addition
of 50,700 net new positions in February. Most of the gains were
in the services industries while manufacturers saw hefty layoffs
for the second straight month.
OTTAWA, March 6 (Reuters) – The Bank of Canada softened its
stance on the need for interest rate hikes on Wednesday, saying
it will likely hold its benchmark rate steady for “a period of
time” but that its next move would still probably be a hike
rather than a cut.
The central bank held its overnight lending target unchanged
at 1.0 percent, where it has been since September 2010. It had
been signaling for several months that it intends to raise the
rate, but in January said such a move was “less imminent” and on
Wednesday took another step back.
OTTAWA, March 4 (Reuters) – Canadian Finance Minister Jim
Flaherty warned the country’s banks on Monday not to engage in
the kind of risky lending that led to the U.S. housing crisis,
after Bank of Montreal cut a popular mortgage rate back to a
Record-high household debt, fueled partly by ultra-low
borrowing costs, remains a nagging concern for Flaherty even as
Canada’s once-hot housing market starts to cool.
OTTAWA, March 1 (Reuters) – Slow Canadian economic growth
means the government will have lower revenues than initially
forecast in drawing up the next budget and some ministries may
need to cut spending further, Finance Minister Jim Flaherty said
He said he continues to plan to eliminate the federal
government’s relatively small deficit by 2015 in spite of the