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A budget deficit: justified?

- January 23, 2009

The federal government has said it will run a $34-billion deficit in the coming fiscal year, and a $30-billion deficit in the following year.

Federal Finance Minister Jim Flaherty presented his latest budget on Tuesday.

The debt announcement marks a significant shift for the country's finances. Between 1998 and 2008, the Canadian government ran sizeable surpluses and paid down about $105 billion on the national debt.

Just two months ago, the Tories flatly dismissed that deficit spending was imminent. During the federal election, Prime Minister Stephen Harper said repeatedly that his government would keep the country's finances out of the red.

So, what do you think about the federal government's plan to run a deficit?