The latest economic analysis shows that previously announced growth of the Canadian economy is overstated.
According to the new projections, the economy growth will be at a slow pace until 2015.
But Finance Minister Jim Flaherty declared that this situation will not be an obstacle for the Government to balance the federal budget to 2015. Moreover, it will run up a sizable surplus before the next federal election.
"The plan is to budget a surplus in 2015 and not a tiny surplus," Flaherty said. "There will be no doubt that we`re balanced in 2015."
It was a response to the recently released Parliamentary Budget Officer report, showing very thin profit in the critical 2015-16 fiscal year. The report noted that, at best , the government will be able to achieve by this time a non-significant surplus - $ 200 million.Flaherty believes that the report does not take into account significant savings from freezing of the public sector spendings.
Last week, Flaherty reported that last year`s budget deficit was $ 7 billion less than expected, due to more efficient spending.The 2015-16 fiscal year is critical date for the current government due to upcoming Federal Election in 2015. Only the balanced state budget will allow the Conservatives to launch their re-election campaign successfully.