Harper may run budget deficit

OTTAWA - Prime Minister Stephen Harper suggested Thursday that his government will run a budget deficit next year if he and his cabinet believe it would be the best thing for the Canadian economy.

On the campaign trail earlier this fall, Harper, as well as the leaders of both the Liberals and the NDP rejected the notion of going into deficit.

"I was asked . . . whether I would run a deficit," Harper said on Oct. 7 after unveiling his party's platform. "And I said no. That's my answer."

But a looming global recession is likely to side-swipe Canada and that could shrink Ottawa's tax revenue.

On Thursday in Toronto, some of Canada's top economists and bankers told Harper that trying to make up for that lost revenue with drastic spending cuts or increased taxes could do more harm than good.

"One message was very clear," Harper told reporters at the conclusion of Thursday's meeting. "Don't be afraid to run a deficit if the deficit is in the best interests of the economy.