If not needed to meet unforeseen economic changes, the reserves will go to reducing the deficit further. A lower deficit means lower interest rates , growing confidence and new investment leading to more jobs and growth . Inflation is low and will remain low. Short-term interest rates have declined by about 3 percentage points since March 1995. That dependence will continue to decline.
Job creation is the most important statistic of all.
These gains have been partially offset by declines in public sector employment . Further reductions in the unemployment rate will require a strengthening of private sector job creation. The challenge is to build on our gains. Toward that goal, the budget announces a wide range of additional actions to help secure the future for Canadians. The budget takes further actions to create a focused, more affordable government that effectively advances the key priorities of a productive, job-creating economy in a modern Canadian federation.