OTTAWA: Despite reports that Canada’s finances are in horrible shape, Prime Minister Jean Chretien has vowed he will not abandon his commitment to put Canadians back to work.
He refused to confirm the deficit for the 199293 fiscal year could approach $40 billion although he did say he was not surprised by what he had seen since being sworn in just over a week ago.
“We had a plan in the contest of a very different financial situation,” and we are going to go ahead with our (promised $6 billion) infrastructure program. Part of the solution is to restore confidence to the people.”
Earlier, Deputy Prime Minister Sheila Copps told reporters the deficit may result in the government waiting a little longer than it anticipated before it introduces some of its programs,
But she also insisted there would be no backing away from the promises of the now famous red policy book.
The dollar fell half a cent last week after two Montreal newspapers reported the final federal deficits likely to be around $40 billion instead of the $35.5 billion forecast by the former Progressive Conservative government.
If the reports are true, the Tories under former Prime ministers Brian Mulroney and Kim Campbell would have run up the largest federal deficit in history.
While Chretien refused to even speculate on the size of the deficit, federal officials confirmed the deficits for both 199293 and 199394 could hit $40 billion.
Much of any increase hinges on accounting decisions to be made by the new government.
Officials say if the Liberals adopt the approach recommended by the government’s chief accountant, the deficit figure will balloon.
Article extracted from this publication >> November 19, 1993
