Canadian finance chief warns US, others on deficit

Canadian Finance Minister Jim Flaherty says other developed nations, including the United States, should come up with clearer plans on how they are going to get their weighty budget deficits under control.

LONDON — Canadian Finance Minister Jim Flaherty says other developed nations, including the United States, should come up with clearer plans on how they are going to get their weighty budget deficits under control.

Flaherty said in London on Tuesday he was concerned about the situation in Greece, and that tackling big deficits is necessary to restore confidence.

Britain’s budget deficit is expected to reach 12.8 percent of gross domestic product in 2009/10, while the U.S. deficit hit 9.9 percent of GDP last year.

Canada currently holds the rotating leadership of the Group of Seven countries and has one of the smaller deficits in the bloc _ 3.5 percent of GDP.

Flaherty says he intends to halve that in two years and return to a balanced budget in four or five years.

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