Don’t expect any risky ‘spending schemes’ in 2013 federal budget: Flaherty

TORONTO – Finance Minister Jim Flaherty says don’t expect any “risky new spending schemes” or tax increases in the next federal budget.

Flaherty, speaking to a business audience in Toronto, says his government will not “engage in endless spending to increase deficits.”

The budget, which will be tabled next year, will also not shy away from eliminating “wasteful or ineffective spending.”

With the global economic recovery progressing slowly and threatened on several fronts, Flaherty did say he’s prepared to be flexible if needed, but his plan is to stick to “balanced budgets and low taxes.”

Last week, Flaherty released the government’s revised deficit projections that show a deficit of $26 billion — up $5 billion from the budget forecast last March.

The government pointed to global economic weakness carving into commodity prices and tax revenues.

The gloomy numbers also prompted Ottawa to delay its hopes of balancing the books until 2016-2017, a year later than previously forecast.