2012 Federal Budget: Fiscal Restraint with New Policy Directions

  • July 24, 2012
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Business Alert
Reflecting the precarious nature of the economic recovery, Finance Minister Jim Flaherty delivered a budget with few new tax measures, a moderate amount of spending restraint, and a plan to return to fiscal balance over the medium term. From our perspective it is a prudent budget that trims spending sufficiently to balance the books by mid-decade, while not tapping on the fiscal brakes too hard. While the federal workforce will be reduced, overall the level of restraint is such that critics will be hard pressed to claim that it will undermine the economic recovery.