Well, there's not much in it. $500 million for transit across the country is a bit of a joke. I don't necessarily object to the idea of the debt repayment. It's a good strategy in uncertain times. If we do start to see a real slowdown, it's a great time for infrastructure spending. The provinces seem to be taking the lead in this aspect, with the many transit mega-plans that have emerged in recent years. As a side benefit, they'd make excellent economic stimulus.
I love how the two main environmental spending intiatives are an AECL bailout and money for a coal plant.
I completely agree with 299 about the GST cut. What an absolute waste. That really was an abdication of the responsibility to govern in the interests of the country.
Dion says no election over budget
Conservatives present stingy budget as the economy slows
KEVIN CARMICHAEL AND DARREN YOURK
Globe and Mail Update
February 26, 2008 at 5:10 PM EST
OTTAWA — Liberal Leader Stéphane Dion slammed today's Conservative budget as "one mile wide and one inch deep" but said his party would not force a spring election over the document.
"Under the circumstances, I don't see enough in this budget that would justify that we precipitate an election that Canadians do not want for now," Mr. Dion said.
Earlier, Finance Minister Jim Flaherty presented the stingiest federal budget in more than a decade, reflecting weaker economic growth that forced the government to cut its revenue projections for this year and next.
Mr. Flaherty announced initiatives — including a tax-exempt savings fund and a tax break for factories — valued at $5.92-billion over the next three years.
That's an average of about $1.97-billion a year through 2010, the smallest since the former Liberal government of Jean Chrétien pledged initiatives worth $4.4-billion over four years in 1997.
"Our government is taking the path that requires focus, prudence and discipline,'' Mr. Flaherty said in his budget speech in the Commons.
All indications in the run-up to budget day pointed to the NDP and Bloc Québécois opposing the budget, and the party leaders did little to dispel that Tuesday.
"This is a budget that clearly fails the working families of Canada," NDP Leader Jack Layton said.
"In fact, individual taxpayers are going to have to pay 12 per cent more of the cost of government, while corporations will pay 14 per cent less . . . "
"There is nothing here to train the doctors that families need," Mr. Layton said.
"There is nothing to help deal with prescription drug costs that are really tough on families now. There's nothing for affordable housing. It is not a budget that New Democrats can support."
Bloc Leader Gilles Duceppe said his party will vote against the budget, rhyming off a long list of things he felt the document was missing.
"There aren't significant gains for Quebec in this budget," Mr. Duceppe said.
"There is strictly nothing to help the manufacturing industry. There is something for the Ontario automobile industry, but nothing for Quebec, nothing for forestry industry, nothing for ordinary workers."
However, the Bloc and NDP positions became moot when the Liberals announced their decision not to force an election over the budget.
Former Liberal finance minister Ralph Goodale said the budget accomplishes little, but does touch on a few initiatives pushed by Mr. Dion and the party — more funding for infrastructure, direct assistance to the auto sector and putting more police officers on Canadian streets.
"There is little in this budget that one would put in the offensive category," Mr. Goodale said. "It's not the basis upon which we would defeat the government for now."
Factors abroad are limiting Mr. Flaherty's room to manoeuvre at home. The U.S. economy, which buys more than 80 per cent of Canada's exports of goods, is teetering on the brink of recession amid the worst housing market in a generation.
At the same, global demand for oil, wheat and other commodities that Canada produces is inflating the value of the dollar, taking an even greater toll on manufacturing revenue.
Mr. Flaherty refused to waver from his commitment to put much of any surpluses toward reducing Canada's $457-billion debt.
He pledged $10.2-billion of the $12.9-billion in the fiscal year ending in March to pay down debt. The government plans debt payments of $2.3-billion in the fiscal year ending in 2009 and $1.3-billion in the fiscal year ending in 2010.
"I'd give it a B plus,&" Kevin Dancey, president of the Canadian Institute of Chartered Accountants, said of Mr. Flaherty's financial plan.
"We are in a pretty volatile economic environment right now. In that context, what else could they do?"
They could have found more money for Canadian factories, which are taking the brunt of the global economic slowdown, said Jay Myers, president of the Canadian Manufacturers and Exporters.
Mr. Flaherty extended a tax break on capital equipment that will cost the government about $1-billion in foregone revenue over the next five years.
Manufacturers and processors will now be able to deduct the depreciation of equipment at a higher rate through 2012, three years longer than the Harper government first proposed in its 2007 budget.
Mr. Myers said his members needed a five-year extension because companies need more time to plan their investments.
"This is the sector that is most at risk," Mr. Myers said. "We were expecting more aggressive action."
Mr. Flaherty highlighted the $60-billion of tax cuts over the next five years that was announced in October as his government's answer to a troubled economy.
"This year alone, our government is injecting $21-billion of stimulus into the Canadian economy," Mr. Flaherty said.
"As a share of the economy, this is significantly greater than the stimulus package offered by the U.S."
To its tax initiatives, the government added the Tax-Free Savings Account, which will work much the same way as Registered Retirement Savings Plans.
Starting in 2009, Canadians 18 and older will be allowed to invest up to $5,000 in a tax-sheltered TFSA. They won't pay taxes on any investment gains, and they can withdraw the money without penalty at any time they want.
The initiative, aimed at boosting Canada's savings rate, is the first of its kind. It may relieve some of the pressure on the Harper government to address higher taxes on wealthier individuals, which critics say make it difficult to attract high-paid scientists, bankers and other white collar workers.
The remainder of Mr. Flaherty's budget consisted of range of targeted measures aimed at cities, the elderly, students, aboriginals and the environment.
Highlights include:
* $500-million for investment in public transit.
* A $2-billion fund for infrastructure investment will be made permanent.
* $250-million over five years to help the automotive industry develop more environmentally friendly vehicles.
* $350-million for a Canada Student Grant Program.
* $90-million for older workers hurt by factory closures.
* $300-million to for nuclear energy.
* $330-million over two years to improve access to safe drinking water for First Nations.
Mr. Flaherty also announced a series of border and security initiatives, including $400-million to encourage provinces to recruit 2,500 police officers. The Communications Security Establishment will get $43-million to buy new surveillance gear, and Canada Border Services will get a boost of $75-million. The government also said it will aim to introduce electronic passports in 2011.
