In fact, it will be at its lowest level in half a century. If it were not for interest costs on the debt, the federal budget would now be in a large surplus position. A key milestone on the road to restoring Canada's financial health will be achieved in 1997-98. The last time financial requirements were zero was in 1969-70. This means that the government will not have to go to the markets for new money to pay for programs, or to pay for interest on the debt.
Financial requirements are the measure by which most countries present their fiscal position.
Efforts to improve federal finances are being complemented by similar efforts by provincial and territorial governments. Several provinces are forecasting a balanced budget or a budgetary surplus for the current fiscal year . Based on current budget plans, it is projected to fall to under 2 per cent of GDP in 1998-99. Today, the payoff from tough fiscal action is emerging and the economy is well poised for improved job creation and economic growth .