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Canadians support deep spending cuts

In a recent speech, Prime Minister Stephen Harper opined that Canadians are becoming more conservative.

Maybe Harper's right - at least in terms of becoming fiscally conservative.

According to a new Nanos Research poll, a large majority of Canadians are prepared, and even willing, to face an austere federal budget.

The poll results, published in Tuesday's Globe and Mail, state that roughly sixty percent of those surveyed agree or somewhat agree with the government's plan to generate at least $4 billion, or 5 per cent, in ongoing annual savings by 2014.

When asked for their preferred percentage for targeted cuts, the survey found just over 30 per cent called for cuts that are deeper than 20 per cent. 19 per cent want to see cuts of over 30 per cent.

"I think what this shows is Canadians are primed and ready for government restraint," pollster Nik Nanos told the Globe.

However, he cautioned that "the devil is in the details" and support for cuts will likely wane when Canadians are confronted with what they will mean in practice.

In practice, according to the Globe, the budget could include cuts to: public sector wages, agricultural support, capital expenses, international aid, peacekeeping, border infrastructure and public safety.

Nevertheless the report's findings are clear indication that Canadians are prepared for some tough medicine despite recent warnings from economists and opposition parties that deep budget cuts could do more harm than good.

The likely reason Canadians are primed and ready for deep budget cuts is because we've been through this before.

"Canada's mid-1990s debt crisis also looms large in people's memory," a recent Wall Street Journal article noted.

"The debt-to-GDP ratio hit a modern-day high of 68.4% in the '90s. Foreign investors dumped Canadian government debt, driving borrowing costs sky high.

"Canadians have learned their lessons about debts and deficits."

Finance Minister Jim Flaherty has yet to announce a date for the release the 2012 budget.