Paul Martin’s minority Liberals handed down an election-style federal budget Wednesday, offering up promises of tax cuts, boosted military spending and significant dollars for the environment, seniors and child care.
The Liberal’s eighth consecutive balanced budget tried to offer something for just about everyone.
The vote on the budget will take place March 7.
Fiscal prudence must continue to trump all, Finance Minister Ralph Goodale told the House of Commons in his budget speech.
“Today, we build on what has gone before – and for those who will come after – not by making promises, but by making good on promises. By delivering on commitments.”
Among the spending outlined in the budget:
- $13 billion in new cash for the military, including $7 billion in newly announced funding.
- $7 billion in personal tax cuts through increasing the basic personal exemption.
- $5 billion in gas tax revenues for cities.
- $5 billion for a national child-care program, as previously announced.
- $3.4 billion more in foreign aid.
- $5 billion for environmental initiatives, from reducing greenhouse gas emissions to home retrofits, wind power and the protection of lakes and parks. That includes $3 billion in newly announced cash.
Lesser items range from a modest boost to the low-income seniors benefit to corporate tax cuts, increases in RRSP contribution limits, money to help immigrants settle and a reduction in the air travellers charge.
There’s also a promise to gradually eliminate the 10% luxury tax on jewellery.
The spending commitments amount to almost $42 billion in new cash over five years, or $76 billion if you factor in other spending promises on health care and equalization made since the previous federal budget of last March.