The federal government has announced that, once the budget is in balance, its first priority will be "to provide tax relief to hard-working Canadian families."
In 2013, the federal deficit had shrunk to $13 billion. This year it may disappear entirely.
But it does not follow that the federal government should cut taxes.
The deficit is equal to government spending less government revenues. It is the excess of expenditures over taxes and other receipts in any given year. The deficit is distinct from the debt: the total amount that the government owes. Even though the federal deficit is shrinking, the federal government still has a substantial debt: its "net worth" at the end of 2013 was negative, at -$547 billion dollars (Fiscal Reference Table #47). Measured relative to the size of Canada's economy, that's around 29 percent of GDP.