Just so we're agreed on the facts, the economic forecast we make is based on the average of 15 private sector economists. I met with them last Tuesday. They agreed that the forecast we are using is a reasonable basis for fiscal planning in Canada. Other people have other views from time to time, but since 1994 that has been the practice of the Department of Finance. That's what we use. They provide me with useful advice.
We are on track. We are seeing modest growth in Canada this year. This is relatively good. As you know, Europe is going through a very difficult time, and it may well be entering into recession. That is not true in this country. We just had the August GDP figure, which was plus 0.3%. It looks like Q3 will be reasonably good for Canada, and I expect it will continue to grow in Q4 as well.
Canada is doing relatively well, and I'll continue to rely on the private sector economists with respect to economic forecasts.
The danger of debt is real. We see that in Greece, in Portugal, and we see it in other countries in the world. For governments to continue to run deficits and accumulate public debt is a very dangerous thing.
I think Canadians understand that, and that's why they have supported our plan, which is to plan on the realistic moderate growth we expect to have this year and next year and to implement a deficit reduction tax plan. It's not to reduce transfers to the provinces for health or education, and it's not to reduce transfers to individuals who are disabled or elderly and funded by the Government of Canada through the taxpayers of Canada. We're not reducing any of that.
We are looking for at least 5% savings on the operating costs of government, which most people in the private sector tell me they can do over breakfast.
Thank you.