Canada’s Finance Minister Joe Oliver says he will delay tabling the federal budget until April at the earliest because of the market instability caused by falling oil prices. He made the announcement Thursday (January 15) in the western prairie city of Calgary.
The annual budget plan is usually released in February or March, since the end of the government’s fiscal year is March 31.
“These are tough times for the energy sector,” said Minister Oliver, “but we do not need to be pessimistic. Knowledgeable observers generally agree that prices will move up, at some point, given the long-term demand for energy.”
Despite delaying the budget, Minister Oliver said he wanted to make two things clear: “First, the government will not raise taxes, or engage in reckless new spending, that could endanger our economic recovery, or jeopardize our fiscal situation. And second, we will remain focused on creating jobs and growth.”
The Conservative government of Prime Minister Stephen Harper has emphasized its successful management of the economy since the recession, despite the fact that when it was elected in 2006, there was a budget surplus, which since has been replaced by one deficit after another.
The government had expected to announce a budget surplus in 2015 before the oil prices plummeted. On Wednesday, the minister was still saying the budget would be balanced, despite falling oil prices.
A federal election will be held this year, at the latest in October.
More information:
Toronto Star – Joe Oliver postpones federal budget as oil price plummets – here
Globe and Mail – Federal budget delayed past April on low oil prices, Finance Minister says – here
Reuters (Jan. 13, 2015) – Oliver: on track to balance budget in 2015 – here
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