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FEDERAL BUDGET 2016

Inside Trudeau’s budget: Read the highlights

The federal government unveiled a financial blueprint for Canada on Tuesday that plans on a $29.4-billion deficit, billions in spending on infrastructure, what the Prime Minister calls ‘historic investments’ in indigenous people and extended EI benefits. Here’s a full briefing from Laura Stone in Ottawa

Trudeau’s first federal budget by the numbers

1:17


Deficit

5

in billions of dollars

Projected

0

-5

-10

-15

-20

-25

-30

‘11-

’12

‘12-

’13

‘13-

’14

‘14-

’15

‘15-

’16

‘16-

’17

‘17-

’18

‘18-

’19

‘19-

’20

‘20-

’21

5

in billions of dollars

Projected

0

-5

-10

-15

-20

-25

-30

2011-

2012

2012-

2013

2013-

2014

2014-

2015

2015-

2016

2016-

2017

2017-

2018

2018-

2019

2019-

2020

2020-

2021

5

in billions of dollars

Projected

0

-5

-10

-15

-20

-25

-30

‘11-

’12

‘12-

’13

‘13-

’14

‘14-

’15

‘15-

’16

‘16-

’17

‘17-

’18

‘18-

’19

‘19-

’20

‘20-

’21

5

in billions of dollars

Projected

0

-5

-10

-15

-20

-25

-30

2011-’12

2012-’13

2013-’14

2014-’15

2015-’16

2016-’17

2017-’18

2018-’19

2019-’20

2020-’21

THE GLOBE AND MAIL » SOURCE: BUDGET 2016


The Liberals are projecting a $29.4-billion deficit in the 2016-17 fiscal year – triple what they promised during the election, although a $6-billion contingency fund is built into that figure. There are no plans to balance the books as promised by 2019, when the deficit is projected at $17.7-billion. National debt sits at $648.7-billion in this budget, rising to $718.2-billion by 2019-20.

Here’s a broad look at how revenue and expenses break down for the 2016-17 fiscal year:

$287.7-billion revenues

Excise taxes

and duties

49.6

Income taxes

EI

premiums

Other

revenues

181.4

22.4

27.7

Deficit

$29.4-billion deficit

$317.1-billion expenses

Public debt charges

Major transfers to

other levels of government

25.7

68.6

Major transfers

to persons

Direct program expenses

91.4

291.4

$287.7-billion revenues

$317.1-billion expenses

Public debt charges

Major transfers to

other levels of government

Excise taxes

and duties

25.7

68.6

49.6

Income taxes

Other

Revenues

EI

Premiums

Major transfers

to persons

181.4

Direct program expenses

27.7

22.4

91.4

291.4

Deficit

$29.4-billion deficit

$287.7-billion revenues

Excise taxes

and duties

49.6

Income taxes

Other

revenues

EI

premiums

181.4

27.7

22.4

Deficit

$29.4-billion deficit

$317.1-billion expenses

Public debt charges

Major transfers to

other levels of government

25.7

68.6

Major transfers

to persons

Direct program expenses

91.4

291.4

$287.7-billion revenues

$317.1-billion expenses

Public debt charges

Major transfers to

other levels of government

Excise taxes

and duties

25.7

68.6

49.6

Income taxes

Other

revenues

Major transfers

to persons

EI

premiums

181.4

Direct program expenses

22.4

27.7

91.4

291.4

Deficit

$29.4-billion deficit

THE GLOBE AND MAIL


How Morneau’s balanced budget pledge changed since the election What a difference six months makes: Chris Hannay explains how Mr. Morneau's pronouncements on balanced budgets have changed.

Canada Child Benefit

As expected, the government is repealing current child benefits and introducing a tax-free measure that helps lower- and middle-income families. Although the Liberals say families will see an increase of almost $2,300 this year, experts say it’s still less than what was promised in their platform.

Erin Anderssen: Budget gives low-income families a break – with fewer strings It’s a long way from a daycare solution, with spaces short and fees rising, especially in Canada’s biggest cities. But for many families, this will nevertheless be significant.



Public transit

The government will invest $3.4-billion in transit over the next three years, with Ontario receiving almost $1.5-billion of the new funding, followed by Quebec at $923-million. But no money is promised after that.

Public transit, infrastructure and the environment The Finance Minister characterized the new government as a “champion of clean growth and a speedy transition to a low-carbon economy,” Shawn McCarthy reports.



Infrastructure

More broadly, here’s how the first five-year phase of infrastructure spending breaks down:

Five-year total, in millions of dollars

Green infrastructure

Public transit

Social infrastructure

Cultural and recreational

$342

Public Transit

Infrastructure Fund

$3,400

Early learning and child care

$400

Water, wastewater and waste management infrastructure for First Nations communities

$2,242

Social infrastructure investments in First Nations, Inuit and northern communities

$1,219

Clean Water and Wastewater Fund

$2,000

Affordable housing

$1,481

Climate change

mitigation and

adaptation

infrastructure projects

$518

Supporting municipal capacity-building

$250

Green infrastructure

Public transit

Social infrastructure

Cultural and recreational

$342

Supporting municipal capacity-building

$250

Early learning and child care

$400

Climate change mitigation and adaptation

infrastructure projects

$518

Total

 

Social infrastructure investments in

First Nations

Inuit and northern communities

$1,219

Clean Water and Wastewater Fund

$2,000

Water, wastewater and waste management infrastructure for First Nations communities

$2,242

Public Transit Infrastructure Fund

$3,400

Affordable housing

$1,481

Green infrastructure

Public transit

Social infrastructure

Cultural and recreational

$342

Public Transit

Infrastructure Fund

$3,400

Early learning and child care

$400

Water, wastewater and waste management infrastructure for First Nations communities

$2,242

Social infrastructure investments in First Nations, Inuit and northern communities

$1,219

Clean Water and Wastewater Fund

$2,000

Affordable housing

$1,481

Climate change

mitigation and

adaptation

infrastructure projects

$518

Supporting municipal capacity-building

$250

Green infrastructure

Public transit

Social infrastructure

Supporting municipal capacity-building

$250

Cultural and recreational

$342

Climate change mitigation and adaptation

infrastructure projects

$518

Early learning and child care

$400

Total

 

Social infrastructure investments in

First Nations

Inuit and northern communities

$1,219

Clean Water and Wastewater Fund

$2,000

Water, wastewater and waste management infrastructure for First Nations communities

$2,242

Public Transit Infrastructure Fund

$3,400

Affordable housing

$1,481

THE GLOBE AND MAIL » SOURCE: BUDGET 2016


Barrie McKenna: The dangers of an infrastructure binge Finance Minister Bill Morneau recalled the post-war glory days of infrastructure-building – from the Trans-Canada Highway to the St. Lawrence Seaway – as he rolled out a new government spending spree. (For subscribers)



Affordable housing

The government pledges $2.3-billion in social infrastructure spending on affordable housing construction and renovation, shelters for victims of violence, and tackling homelessness over the next two years. Of that money, provinces and territories will receive $2.2-billion, with another $739-million dedicated to First Nations housing.


Employment Insurance

Owing to the dramatic decline in oil prices, so-called “commodity workers” in 12 regions across Canada – from Newfoundland to Northern Ontario to Alberta to the North – will see their EI benefits extended by five weeks and up to 20 in some cases.

0

70

Claimants in affected regions would be eligible to receive an extra five weeks of EI regular benefits

Long-tenured workers would be eligible to receive up to an additional 20 weeks

0

70

Long-tenured workers would be eligible to receive up to an additional 20 weeks

Claimants in affected regions would be eligible to receive an extra five weeks of EI regular benefits

0

70

Claimants in affected regions would be eligible to receive an extra five weeks of EI regular benefits

Long-tenured workers would be eligible to receive up to an additional 20 weeks

0

70

Long-tenured workers would be eligible to receive up to an additional 20 weeks

Claimants in affected regions would be eligible to receive an extra five weeks of EI regular benefits

THE GLOBE AND MAIL » SOURCE: BUDGET 2016



Indigenous peoples

The budget includes an entire chapter on Canada’s First Nations, pledging $8.4-billion over five years to improve the socioeconomic conditions of indigenous peoples, including $40-million over two years for an inquiry into missing and murdered aboriginal women. Here’s how the first five-year phase of spending breaks down:

Improving the socio-economic conditions of indigenous peoples

Other initiatives

Education, children and training

Rebuilding the relationship

Green infrastructure

Social infrastructure

$2.5 billion

2

1.5

1

.5

0

2016-17

2017-18

2018-19

2019-20

2020-21

Other initiatives

Social infrastructure

Green infrastructure

Education, children and training

Rebuilding the relationship

$2.5 billion

2

1.5

1

.5

0

2016-17

2017-18

2018-19

2019-20

2020-21

Other initiatives

Education, children and training

Rebuilding the relationship

Green infrastructure

Social infrastructure

$2.5 billion

2

1.5

1

.5

0

2016-17

2017-18

2018-19

2019-20

2020-21

Other initiatives

Social infrastructure

Green infrastructure

Education, children and training

Rebuilding the relationship

$2.5 billion

2

1.5

1

.5

0

2016-17

2017-18

2018-19

2020-21

2019-20

THE GLOBE AND MAIL » SOURCE: BUDGET 2016



Veterans

The government has made good on its promise to provide support for disabled and injured veterans, promising $3.7-billion this year alone. It will also reopen the nine Veterans Affairs offices closed under the Conservative government, adding one more in Surrey, B.C.


Postsecondary education

The budget proposes to increase Canada Student Grant amounts by 50 per cent: to $3,000 from $2,000 a year for low-income families; to $1,200 from $800 for middle-income families; and to $1,800 from $1,200 for part-time students.


CBC/Radio-Canada

The public broadcaster gets a big boost in this budget: $675-million over five years for “world-class Canadian content,” and to provide “better access to programs and services in the digital area.”

675

CBC/Radio-Canada

550

Canada Council for the Arts

Canada Cultural Spaces Fund

168.2

Canada Science and

Technology Museum

156.4

114.9

National Arts Centre

105.9

Supporting National Museums

Showcasing Canada’s cultural

industries to the world

35

22

Telefilm Canada

20

National Historic Sites

13.5

National Film Board of Canada

9.6

National Gallery of Canada

675

CBC/Radio-Canada

550

Canada Council for the Arts

Canada Cultural Spaces Fund

168.2

Canada Science and

Technology Museum

156.4

114.9

National Arts Centre

105.9

Supporting National Museums

Showcasing Canada’s cultural

industries to the world

35

Telefilm Canada

22

National Historic Sites

20

National Film Board of Canada

13.5

National Gallery of Canada

9.6

675

CBC/Radio-Canada

550

Canada Council for the Arts

Canada Cultural Spaces Fund

168.2

Canada Science and

Technology Museum

156.4

114.9

National Arts Centre

105.9

Supporting National Museums

Showcasing Canada’s cultural

industries to the world

35

Telefilm Canada

22

National Historic Sites

20

National Film Board of Canada

13.5

National Gallery of Canada

9.6

675

CBC/Radio-Canada

550

Canada Council for the Arts

Canada Cultural Spaces Fund

168.2

Canada Science and

Technology Museum

156.4

114.9

National Arts Centre

105.9

Supporting National Museums

Showcasing Canada’s cultural

industries to the world

35

Telefilm Canada

22

National Historic Sites

20

National Film Board of Canada

13.5

National Gallery of Canada

9.6

THE GLOBE AND MAIL » SOURCE: BUDGET 2016


Kate Taylor: Arts community had better spend its budget money wisely At the very least, this budget recognizes that culture matters. Let’s hope strong decisions flow from that conviction.



Counter-radicalization

The Liberals are following through on their pledge to create an Office of the Community Outreach and Counter-radicalization Co-ordinator, which will lead on Canada’s response to radicalization, at a cost of $35-million over five years. The government also reiterated its pledge to repeal the “problematic” elements of anti-terror Bill C-51 following consultation, with no details on the elements or the timeline.


Refugees

The government has revealed the cost to bring and resettle 10,000 more than Syrian refugees to Canada this year: $245-million over five years.


FEDERAL BUDGET 2016: FULL ANALYSIS

Parents, students and seniors: Rob Carrick explains what the budget means for you

2:06

With budget, Ottawa signals the struggle of the middle class is for real The budget offers help for parents, seniors and millennials, but its most notable feature is an acknowledgment that stories about middle class financial stress aren’t so much whining.
John Ibbitson: Government goes for broke with a bold activist budget We haven’t seen anything like this since the days of Pierre Trudeau. It is a budget to go to war over, for both progressives and conservatives. (For subscribers)
Liberals invest big – and bet economy will get better in four years The first pages of the budget are about hope and the “promise of progress.” The next 20 are pretty grim. But there’s a narrative arc being set up here: now that the money’s flowing, things are going to get better. (For subscribers)
Editorial: Wait, wasn’t th‎is supposed to be about infrastructure? The rhetoric has been about harnessing deficits to invest in the future. That’s not entirely the reality.


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