The Liberal government delivered its maiden budget Tuesday, March 22. A deficit of $29.4 billion in 2016-17, nearly three times the $10 billion promised during the fall election campaign, and a projected deficit of $17.7 billion in 2019-20 rather than the balanced budget that was promised in October.
$8.4 Billion For Aboriginal Programming
One of the earmarks of the budget is a commitment to spending on aboriginal issues. This includes:
- $2.6 billion over five years for primary and secondary education on First Nations reserves, including language and cultural programs, plus $969.4 million over five years for education infrastructure.
$1.2 billion over five years for social infrastructure for Aboriginal Peoples, including First Nations, Inuit and northern communities.
- $10.4 million over three years for new women's shelters in First Nations communities, and $33.6 million over five years and $8.3 million ongoing for support services.
- $40 million over two years for the inquiry into missing and murdered aboriginal women and girls.
Changes To Child Benefits
The Liberals will be changing the structure of Canada's child benefits, ending income splitting and other tax credits for families and parents.
This means:
- $10 billion more over two years for a new Canada child benefit, absorbing and replacing both the Canada child tax benefit and the universal child care benefit. Targeted to low and middle-income families, the government says the new benefit provides an average increase of nearly $2,300 in 2016-17.
- An end to income splitting for couples with children, the children's fitness tax credit and the children's arts tax credit.
Changes To Employment Insurance
The government will spend $2.5 billion over two years on a suite of changes, including reducing the required work experience for new entrants and re-entrants; halving the two-week waiting period; extending a pilot project to allow claimants to work while collecting benefits; simplifying job-search requirements; and extending the benefit eligibility window in specific regions with a higher unemployment rate.
Veterans Rewarded, Military Purchases Delayed
- $5.6 billion more in benefits to veterans and their families over five years, including a disability award that increases to $360,000, retroactive to 2006, and an earnings loss benefit to injured vets of 90 per cent of pre-release salary. The government is also re-opening nine veterans' service offices across the country and adding a 10th.
- Planned National Defence purchases worth $3.7 billion — ships, planes and vehicles — are being deferred indefinitely.
..But Military Purchases Delayed
Planned National Defence purchases worth $3.7 billion — ships, planes and vehicles — are being deferred indefinitely.
More Benefits For Seniors
The budget includes $3.4 billion over five years to increase the guaranteed income supplement top-up benefit by up to $947 annually for single seniors, and restore the old age security eligibility age to 65 from 67.
Small Business Tax Rate Unchanged
The Liberals broke a major campaign promise to cut the small business tax rate. Instead, the rate will remain at the current 10.5 per cent on the first $500,000 of active business income.
Grants For Students To Increase
The Liberals will spend $1.53 billion over five years to increase Canada student grants to $3,000 from $2,000 for low-income students, to $1,200 from $800 for middle-income students and to $1,800 from $1,200 for part-time students.
$2 billion over three years is also earmarked for a new strategic investment fund for infrastructure improvements at colleges and universities, in partnership with provinces and territories.
10-Year Green Infrastructure Plan
The Liberals' green infrastructure plan includes:
- $2.2 billion over five years in water and wastewater treatment and waste management
- $2 billion over two years for a low-carbon economy fund
- Over $1 billion over four years to support future clean technology investments
- $345.3 million over five years to Environment and Climate Change Canada, Health Canada and the National Research Council to take action to address air pollution.
Researching Foreign Homebuyers
The Liberals will spend $500,000 to help understand the role of foreign homebuyers in the country's housing market.
The government says comprehensive and reliable data on the number of homes sold to foreign buyers does not exist right now.
Syrian Refugee Program Cost
The marquee Liberal commitment to Syrian refugee resettlement could end up costing taxpayers close to $1 billion.
The budget provided an additional $245 million over five years to bring in the remaining 10,000 people needed to meet the Liberal promise to resettle 25,000 Syrian refugees by the end of 2016.
More National Parks
$142.3 million over five years will be spent to add new national parks and improve access during the 150th anniversary of Confederation.
Money For Affordable Housing Needs
The Grits will provide up to $178 million over two years for the provinces for urgent affordable housing needs.
Canada's Food Safety System
The budget earmarks $38.5 million over two years to strengthen and modernize Canada's food safety system.
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Canada's infrastructure:
It's a lot less money than it originally promised, but is willing to pick up more of the tab for cities and provinces.
During the election campaign, the Liberals said they would add just over $5 billion in new infrastructure spending this year and a further $5 billion next year.
Finance Minister Bill Morneau plunged Canada towards a deficit of $29.4 billion, showed no path towards balance.
The Liberals are ditching a promise to cap how much high-income individuals can claim through stock option deductions.
They've indefinitely postponed its election promise of reducing the small business tax rate to nine per cent.
The rate will remain at the current 10.5 per cent on the first $500,000 of active business income.
This video shows Prime Minister Justin Trudeau extolling support for lowering the small business income tax rate during the federal election:
They postponed, for now, a promised multimillion-dollar plan for flexible parental leave and better access to compassionate care benefits for those who provide care for seriously ill family members.
The budget did not include the Liberals' promise to invest $3 billion over four year in better home care services, such as in-home caregivers, financial support for family care, and palliative care.
The cultural sector received a $1.87 billion boost over five years Tuesday in a Liberal budget that aims to reshape the narrative of the economy.
To do that, storytellers and musicians, artists and journalists all need investment, the Liberals said as they presented a budget that followed through on a key promise to restore funding to the CBC but delayed or trimmed promised funds for other groups.
"Believing in innovation is also believing in the talent and in the creativity of Canadians."
~ Finance Minister Bill Morneau
During the campaign, the Liberal promised to restore and increase the CBC's budget and will begin with a $75-million injection this year, followed by $150 million a year over until 2020-2021.
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