However, if the fiscal imbalances reflect fundamental (permanent) changes in the economy, then policy should be directed at altering the receipts and payments (ie changing taxes and expenditures).
Political gridlock and a serious tackling of fiscal imbalances as likely only in 2013, after the presidential elections, were cited as reasons for the change in outlook.
Chronic fiscal imbalances are the second-most likely threat, followed by rising greenhouse gas emissions, water supply crises and mismanagement of an aging population.
Ministers had very productive conversations on the retirement income system, federal changes to programs affecting provinces and territories, ongoing fiscal imbalances between governments, and the modernization of federal-provincial fiscal arrangements.