Federal government remains on track to balance budget by 2015: Flaherty

OTTAWA – The federal government’s latest annual financial report shows the deficit is continuing to shrink.

It dropped to $18.9 billion in 2012–13 from $26.3 billion in 2011-12 and $55.6 billion in 2009-10.

Finance Minister Jim Flaherty says the government is on track to balance the budget by 2015.

The government figures show that direct program expenses fell by 1.2 per cent in 2012-13 from the prior yearand 3.8 per cent from 2010–11.

Flaherty says the balanced-budget target can be reached without raising taxes or cutting key payments to people or other levels of government.