Federal Finance Minister Ralph Goodale reemphasized the importance of debt reduction to his fiscal plans, but is allowing that tax cuts may get a look, too.

Speaking at the Calgary Chamber of Commerce Tuesday, Goodale touted the virtues of lower debt and indicated that he continues to focus on producing balanced budgets, noting that sustained balanced budgets and putting the federal debt on a steady downward track have also restored Canada’s Triple-A credit rating in financial markets.

However, “the pressures in front of us are enormous,” he noted, including: equalization payments among the provinces; election promises to cities; early childhood development, learning and care; seniors, the disabled and their caregivers; Aboriginal Canadians; the innovation agenda; defence and foreign affairs.

“There will also be worthy arguments advanced for further targeted tax measures to improve Canada’s social and economic performance — reducing the burden on middle- and lower-income Canadians, for example, and increasing Canadian competitiveness.”

Goodale said he has just started planning for the next budget due in February or March. In early October, the official audited financial report for the last fiscal year (2003–04) will be released. By mid-October, based on the final figures for last year and the most current information for this year, four independent forecasting firms in the private sector will provide detailed fiscal projections for the next five years, which will establish a new fiscal framework to be published in the fall fiscal update in November.

“While much work remains to be done, some very encouraging signs have emerged since the last federal budget in March and the election campaign in June,” Goodale said, meaning greater-than-expected revenues this calendar year for both the federal government and the provinces. The final results for the last fiscal year are expected to show higher-than-expected revenues.

“These better results are a pleasant and positive turn of events. I look forward to their formal confirmation in October and November, because I will not risk the nation’s balanced budget on the basis of revenues I only hope to have (as opposed to what I know we will have),” he said.

Goodale also reiterated that he has launched a comprehensive review of the government’s economic and fiscal forecasting.