OTTAWA, Sept. 11 (UPI) -- Canada's budget deficit was adjusted upward to $55.9 billion this year, but can be trimmed by $50 billion in five years, Finance Minister Jim Flaherty said.

The announcement marks the third time the minority Conservative government has raised the deficit estimate since a year ago when it initially said there would be no deficit, despite the recession.

In January, the forecast was for a $33.7 billion shortfall, which was increased in June to $50.2 billion, the Canwest News Service reported.

With a possibility of a fall national election, Flaherty used his announcement to repeat one of the Conservatives' previous campaign platforms.

"There are those who argue that tax increases are an inevitable, even desirable, way to return to a balanced budget," he said. "That will not be the approach of this government."

Flaherty said much of the effort to get the deficit down to $5.2 billion by 2015 will "require decisions of government that won't always be popular or pain free," and "it will require a lot of saying 'no' to pet projects and special interests."

The minister also made a claim likely to become a plank in the Conservative election campaign.

"On the fiscal side, we are in the best situation of any country in the G7 (Group of Seven industrialized nations)," he said.