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"Only Ontario and Prince Edward Island are currently operating in the red, Flaherty said. 'The majority of governments in Canada - the federal government, the territories and eight of the 10 provinces - have either balanced their budgets or (are) in surplus, and that's good to know as we enter into a discussion . . .to address this complex issue of fiscal imbalance.' ..... In his speech, Flaherty offered few hints about the federal budget expected next month, save one: it will shave a percentage point off the GST, a key campaign promise that's expected to rob federal coffers of at least $4.5 billion a year. Some analysts have suggested the cost could be as much as $5.2 billion. "
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