The ratings on Canada rest on its sound public finances, its diversified economy, and its political stability. Canada has undergone a remarkable fiscal consolidation in the past 13 years, moving from general government deficits (incorporating results from all levels) of more than 5% of GDP to surpluses of 2% of GDP. Standard&Poor's Ratings Services expects fiscal discipline to be maintained under the minority Conservative government of Prime Minister Stephen Harper. Nevertheless, fiscal surpluses, which have prevailed for the past eight years, are likely to be reduced to a near-zero balance with the expected reduction of the federal Goods&Services Tax (GST) to 6% from 7% this year, and further to 5% during the following four years, and
