Highlights of the 2007 federal budget

jsheppard

From Tuesday's Globe and Mail

WHAT THE BUDGET MEANS

If you are a parent: You will receive a child-tax credit worth $310 per child for most families.

If you are a low-income earner: You will receive a Working Income Tax Benefit of $500 to help get off welfare.

If you are saving for your child's education: Your $4,000 RESP annual contribution limit is eliminated, but there's now a $50,000 lifetime cap.

If you are a senior: You can convert RRSPs to retirement income up to age 71, an increase of two years.

If you're buying a car: You can receive a rebate of up to $2,000 for buying fuel-efficient vehicles. A green levy penalizes auto manufacturers up to $4,000 on inefficient vehicles.

If you are a student: The budget includes $35-million over two years — then $27-million a year — for scholarships for graduate students.

THE BIG PICTURE

Billions in extra funding to the provinces for health, infrastructure, post-secondary education and other items to address the so-called fiscal imbalance.

Tax Back Guarantee directs $1-billion a year in debt interest savings to personal income tax reductions.

Government spending projected to increase by $10-billion to $233-billion in 2007-2008, with program costs jumping by 5.7 per cent.

Total revenue projected at $236.7-billion in 2007-2008, leaving a surplus of $3.3-billion with $3-billion of that going to debt reduction.

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