Here’s what you need to know right now.
Key Items
- Projected deficits through 2020-21, with a commitment to lower the debt-to-GDP ratio over the same five year period.
- The deficit will be 29.4 billion in 2016/17, diminishing to $14.3 billion in 2020/21.
- The debt-to-GDP ratio will be 32.5% in 2016/17, diminishing to 30.9% in 2020/21.
- Major infrastructure investments, targeted at projects falling into the categories of public transit, social infrastructure, and green infrastructure.
- $11.9 billion in new funding over five years, starting immediately, with a total of $60 billion in eventual planned spending;
- $3 billion in continued support for municipal infrastructure through the Gas Tax Fund and GST Rebate for municipalities;
- A commitment to transfer remaining uncommitted funds from older federal infrastructure programs to municipalities through the Gas Tax Fund; and
- A plan to accelerate spending of the $9 billion available under the New Building Canada Fund’s Provincial-Territorial Infrastructure Component and other existing infrastructure programs.
- Elimination of the 2% cap on funding First Nations’ programs – resulting in $3.1 billion in new spending on First Nations’ issues from 2016/17 – 2017/18. Investments will be targeted at education, child services, on-reserve infrastructure, and the National Inquiry into Missing and Murdered Aboriginal Women and Girls.
- Major investments in stimulating the development of green technology and scientific research generally, through:
- $1 billion over four years to fund clean technology in the forestry, fisheries, mining, energy, and agriculture sectors;
- $130 million over five years to support clean technology R&D and commercialization generally; and
- $2 billion over three years for a new Post-Secondary Institutions Strategic Investment Fund – aimed at modernizing campus research and commercialization facilities.
- Employment and the business sector:
- Expanded access to EI and extended benefits in regions that are suffering from economic shock;
- Making the Canada Student Loan Program more generous and investing $165.4 million in the Youth Employment Strategy in 2016/17; and
- Deferral of further reductions in the Small Business Tax rate.
- Income tax measures:
- Inauguration of a new Canada Child Benefit (replacing income splitting for families with children under the age of 18 as well as the children’s fitness and arts tax credits). The Canada Child Benefit is non-taxable and income-tested; and
- Formalization of the previously announced middle class tax cut (now 20.5% for those earning $45, 282 – $90,563) and parallel creation of a new 33% tax rate for those earning $200,000 or more.
