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Winnipeg Free Press - PRINT EDITION

Ottawa keeps spending under control

By: Staff Writer

Posted: 10/31/2012 1:00 AM | Comments: 0

OTTAWA -- New data show the federal government appears well ahead of course for controlling spending.

The numbers released in the country's public accounts show Ottawa's total expenses came in $9.9 billion lower in the fiscal year 2011-12 than was projected in the June 2011 budget.

Program expenses were $8 billion lower -- the rest came from a decrease in interest charges to service the debt.

The headline for the report was the deficit for the year was $26.2 billion.

While higher than Ottawa's most recent estimate, it was $6 billion less than what Finance Minister Jim Flaherty expected when he handed in the budget in June 2011.

Previous reporting, including from the government's monthly fiscal monitor, had pointed to slowing spending growth, but the national accounts calculation released Tuesday shows just how dramatic the drop has been.

Overall, spending for the 2011-12 fiscal year was only $1 billion above the previous year, or a 0.4 per cent increase, well below the inflation rate.

Asked about the dramatic change, Flaherty said it shows the government is doing its job.

"We're controlling spending, that's something the government of Canada has control over," he said, noting Ottawa is helpless to combat global forces that are dragging down the economy.

Flaherty would not break down how savings were achieved, but said a portion comes from the phasing out of the government stimulus introduced during the recession.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition October 31, 2012 $sourceSection0

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