PM announces commitment to further reduce National debt

Prime Minister Stephen Harper today announced Canada’s commitment to achieve a federal debt-to-GDP target of 25 per cent by 2021. The announcement was made at the G-20 Summit in St. Petersburg, Russia.

“Our Government remains committed to returning to balanced budgets by 2015,” said the Prime Minister. “Lower debt-to-GDP ratios will result in lower taxes for Canadians and a strong investment climate that supports job creation and economic growth across the country.”

The targets set today will also help Canada maintain its advantageous fiscal position and meet the objectives agreed to in the Los Cabos Action Plan.

In St. Petersburg, Canada is pushing world leaders to implement ambitious country-specific, medium-term fiscal strategies that are sufficiently flexible to take into account near-term economic conditions, to support global economic growth and job creation while putting debt as a share of GDP on a sustainable path.

The Prime Minister also noted that meeting today’s commitment is conditional based on the economic outlook. The Government of Canada may consider advancing the planned targets if Canada’s economic growth is significantly stronger than expected.

Today’s target announcement highlights Canada’s longstanding commitment to fiscal discipline and the sound management of public finances. It is also consistent with the Government’s plan to return to balanced budgets by 2015.

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