Budget in Brief
[PoliticsWatch posted 4:45 p.m. March 19, 2007]
OTTAWA — Here
are the highlights from Monday's federal budget tabled in the House
of Commons by Finance Minister Jim Flaherty.
> A new $2,000 child tax credit will provide up to $310 of tax relief for each child under 18.
> A new $550-million-per-year Working Income Tax Benefit that will provide up to $500 per year for individuals and $1,000 for families to reward and strengthen incentives to work.
> Increasing the age limit to 71 from 69 for registered retirement savings plans and registered pensions.
> Overall taxes for eligible pensioners will be reduced by allowing pension income
splitting as promised in October when the government decided to tax
> New resources to the Canada Revenue Agency to detect and close down tax avoidance through offshore tax havens.
> A Vehicle Efficiency Incentive structure that will include a new rebate of up to $2,000 for the purchase of a new fuel-efficient vehicle, and a Green Levy on new fuel-inefficient vehicles.
> Provide over $1.5 billion in the Canada ecoTrust for Clean Air and Climate Change to support major environmental projects with provinces and territories.
The prime minister has already made ecoTrust announcements in
Quebec, Alberta and B.C.
> Phase out the accelerated capital cost allowance for general investment in the oil sands by 2015.
> An additional $2 billion over seven years to support the production of renewable fuels.
> A new National Water Strategy
> $3.2 billion in increased transfers to the provinces this
year and $7 billion over three years to
settle the fiscal imbalance.
> This includes $919 million to Quebec alone this year.
> Up to $612 million to support jurisdictions that have made commitments to implement patient wait times guarantees.
> $30 million over three years for patient wait times guarantee pilot projects to assist provinces and territories in implementing their patient wait times guarantees.
> Accelerate the implementation of the Canada First defence plan, under which the Canadian Forces will receive $3.1 billion over the next three years.
> Invest $10 million a year to establish five new Operational Stress Injury Clinics across Canada to help military personnel and their families deal with stress injuries.
> The government commits to providing a danger-pay
equivalent to those soldiers who are evacuated home.
> Canada savings education grant increases to
> Eliminating the $4,000 limit on annual contributions on RESPs and increasing the lifetime contribution limit to $50,000 from $42,000.
> The government will spend $233.4 billion in the next fiscal
year. Program spending is up 7 per cent from last year.
> The national debt stands at $472 billion.
> The projected surplus is $3.3 billion.
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