The Canadian Budget

Not great, but not too bad either. The budget remains balanced over the next 5 years, even as spending goes up almost 9% this year alone. Part of the spending announced today comes from an $11B gov-wide review (nice to see), and part of it is newly announced money. It seems that a majority of the committments are back end loaded, coming in to effect mainly in the last 2 years of the 5 year plan. It's $42 billion in new cash over five years, or $76 billion if you include the spending promises on health care and equalization made since the previous federal budget of last March.

• 13 billion for the military, $7 billion is new
• $7 billion in personal tax cuts by increasing the basic personal exemption, but it's almost entirely in the last 2 years; nothing this year, and only $100 next year.
• $5 billion in gas tax revenues for cities
• $5 billion for a national child-care program, but it should be a tax exemption for all parents with kids under 5
• $3.4 billion more in foreign aid
• $5 billion for environmental initiatives

Lots of other stuff: some debt repayment, more money for seniors benefit, corporate tax cuts, increases in RRSP contribution limits, money to help immigrants settle, a reduction in the air travellers charge, a promise to gradually eliminate the 10 per cent luxury tax on jewellery [we have a luxury tax on jewellery? - ed], etc