Municipalities, yes, I certainly agree with you, since I was a municipal councillor for 11 years in Ville Saint-Lambert, in my riding, on the South Shore of Montreal. They never had a deficit in Saint-Lambert or in any of the neighbouring towns or anywhere in Quebec, for that matter. If a town runs a deficit in one year, the deficit is transferred to the following year's budget. If this principle were applied by the federal government, it would not have a $500 billion deficit today.
In the House of Commons on October 25th, 1994. See this statement in context.