 Because of tax cuts instituted the previous year, the budget presented by the government predicted a small deficit for 1957–58, and a large one, $648 million, for the following year.Minister of Finance Fleming and Bank of Canada Governor James Coyne proposed that the wartime Victory Bond issue, which constituted two-thirds of the national debt and which was due to be redeemed by 1967, be refinanced to a longer term.After considerable indecision on Diefenbaker's part, a nationwide campaign took place, and 90% of the bonds were converted.