Finance Minister Introduces 2013 Federal Budget

Finance Minister Jim Flaherty has introduced a
stay-the-course budget that pledges to eliminate the deficit by fiscal 2015, but counts on strong economic growth and closing tax loopholes to help get there.
Flaherty says the deficit for the current fiscal year is
projected to be $25.9 billion but will become an $800 million surplus by 2015-16.
He’s predicting growth in revenues from corporate and personal income taxes and the GST of almost five per cent a year to make his figures work.
Efforts to reduce international tax evasion and crack down on tax cheats are also expected to add 6.7-billion dollars in revenue over five years.
But Flaherty’s foot remains firmly on the spending brake with direct program expenses projected to plunge almost $4 billion this year and another $2.5 billion in 2014-15.
Funds for a revamped plan for skills training, centerpiece of the budget, are being reallocated from current Labour Market Agreements with the provinces.
The $15,000 Canada Job Grant won’t start until April 2014 and is contingent on negotiations with the provinces, who are expected to kick in a third of the funds, with Ottawa and the employer also chipping in $5,000 each.
Other budget highlights include:
– Two-year extension of an accelerated capital cost allowance to help manufacturers.
– Infrastructure spending of $47 billion over 10 years, starting next year.
– An improved tax break for families adopting children.
– $100 million over two years to support housing construction in Nunavut.
– Special tax break for first-time charitable donations to
encourage young people to give.
– End to tariffs on baby clothes and sports gear, including
skates, hockey sticks, skis and golf clubs.
– Canadian International Development Agency to be merged with Foreign Affairs.