Today’s federal budget was about nothing — no new tax cuts, no job creation initiatives, no investment incentives, and there was no increased spending on health.

In fact, there was very little of anything in the budget. As anticipated, the federal government focused on increased spending for defence and security — $7.7 billion over six fiscal years — but there was nothing in the way of spending to stimulate the economy and create jobs.

Most disappointing to the securities industry will be the lack of tax cuts and, despite intense lobbying from industry groups, there was no mention of RRSPs: no increased contribution limit; no indexing; no tax pre-paid savings plan. Nor was there much stimulative spending.

Taxpayers — be they individual or corporate — will see no additional tax cuts, and no acceleration of the already-planned cuts. The feds are sticking to the agenda set out in the 2000 Economic Statement and Update. The indexation factor for 2002 is 3%.

In the 2001-2002 budget year, less than $1 billion will be spent on health; skills, learning and research; and, infrastructure and the environment. The feds are introducing a new Strategic Infrastructure Foundation, with a minimum $2 billion commitment, but the first payment to the foundation will come from any surplus at the end of this fiscal year. It will be the fall before any of that money can kick in, if there is any money.

The feds seem to be falling back on the Infrastructure Canada Program for fiscal stimulus. Introduced in the 2000 budget, that program has so far seen more than 800 projects approved for funding — which is expected to provide economic stimulus in 2002-2003.

Of the $105 million geared to health spending in 2001-2002, $95 million renews the annual budget of the Canadian Institute of Health Information for the next four years. The budget does “confirm” the $23.4 billion in federal funding set aside for renewing health care reserves following the September 2000 first ministers’ agreement. But there is nothing to address Canada’s deteriorating health care system.