Although Finance Minister Joe Oliver is committed to a budget surplus, Assistant Professor Mike Moffatt argued a budget deficit might be in order given the current state of the economy.
In his op-ed for Maclean’s, Moffatt said a budget deficit needs to be embraced by Canadians rather than feared. He pointed out that Canada’s new Federal Balanced Budget Act allows for budgetary deficits when a recession has occurred, is occurring or is forecast.
“Running a budget deficit is certainly appropriate given the current economic situation,” said Moffatt.
