After the long-humored claim that the Canadian government would run no deficit this year by a Conservative staffer early in 2008, it became official yesterday that the estimated deficit for the 2009 and 2010 fiscal years will total $64 billion; a number which represents well over 10 per cent of Canada’s M1, and just under 10 per cent of M2 in 2008.

The Canadian money supply, which is currently sitting at about $450 billion (M1) or $825 billion (M2) is not yet at this point contractionary. An anonymous official from the Conservative administration confirmed the numbers Thursday - a $34 billion deficit in 2009 and similarly, a $30 billion deficit in 2010 - adding that within five years, the budget was expected to return to running a surplus. The Canadian government has currently run a surplus for more than a decade.

The Finance Minister, Jim Flaherty, will be releasing the formal budget this Tuesday, which is expected by many political and economic analysts to have more than $2 billion in social housing support, and over $1 billion in “bailout”-type support for farmers, manufacturers and other industry that is said to be “hard hit” - though, not including any technology or research industries.

Parliament reopens tomorrow after the six-week suspension resulting from opposition parties threatening to topple the Conservative government due to a lack of adequate stimulus and protectionism within the expected previous budget.

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