The budget would actually be on the precipice of balance by 1998-99. He could have easily used the emerging fiscal dividend to inject respectable sums of money into good Liberal causes, like the CBC or direct job creation. Not with an election coming up. The war must go on, at least until the victor can collect his tribute from the voters. He will hang on to his deficit come hell or high water.
Public opinion is evolving rapidly, Liberal strategists acknowledge.
They know that while the deficit continues to cast a powerful influence over public opinion, it peaked as an issue in 1995. Month by month, more people believe that the crisis is over. The Liberals might be able to win the latter argument, but they feel they are a shoo-in on the former. Our goal must be permament fiscal recovery. That is the only assured route to permament tax relief.