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The expectation is that the fall update will include a budget implementation bill and specific tax measures.

The advantage of including the measures in the fiscal update, rather than in a spring budget, is that the tax cuts will be felt by voters in the spring – just months ahead of the next federal election.

The use of legislation will also put the opposition parties on the spot. If they want to use the billions of dollars allocated by the Conservatives for tax cuts, they will have to vote against the government’s ways and means motion. If they do so, they are likely to find themselves offside with voters who quite like the idea of tax cuts.

The better-than-expected financial picture means the Conservative government could have significantly more dollars to spend on tax breaks and other goodies for voters leading up to the federal election slated for October, 2015.

Speaking to the Brampton and Mississauga Boards of Trade, Mr. Harper said the government is still on pace to return to surplus sometime in 2015 but is planning to run a small deficit in the current year. The budget is projected to be in a $2.9-billion deficit in 2014-15 and a $6.4-billion surplus in 2015-16. “We continue to intend to run a small deficit this year before returning to surplus. We also intend, however, to move quickly to implement promises that we made to Canadians during the last election.”

The government promised to move on tax breaks once the budget was balanced.