OTTAWA – Ottawa’s financial position isn’t quite as sound as previously thought, with the government reporting Friday it missed its deficit target for the just completed fiscal year by $1.3 billion.
The Finance Department’s final accounting on the 2011-12 year shows the federal deficit will officially be recorded at $26.2 billion, above the $24.9 billion estimate of last March’s budget.
But Finance Minister Jim Flaherty tried to put a positive spin on the numbers. He noted the government continues to make steady progress from the previous year’s $33.4-billion deficit, and the even higher $55.6-billion shortfall of 2009-10 — an all-time high.
The government will indicate whether it expects to meet this year’s $21.1-billion deficit target in a few weeks with the release of the fall update, but Flaherty cautioned there remain very real risks to the economy.
