Here are highlights from Canada's Finance Minister, Bill Morneau's first budget, presented yesterday:
- Debt: Our national debt is expected to grow by $113 billion by 2020-21, but debt-to-GDP ratio to is expected to remain unchanged maintaining at around 32 per cent.
- Growth: Deficit is takes into account a very conservative 0.4% annual growth - far lower than forecasted by economists.
- Infrastructure spending:Â The Federal government will allocate $120 billion over 10 years, initially toward public transit projects and expansions, then water, waste management and housing infrastructure.
- Veterans: The federal government is recognizing the needs of veterans, by reopening nine offices providing veterans services, increases amounts payable to injured veterans and indexes some benefits to inflation.
- First Nations Peoples: $8.4-billion to be spent over the next 5 years, starting with $2.6-billion of to improve elementary and secondary education on reserves. Other funds will be allocated toward drinking water and affordable housing, as well as improvements in family and child services.
- Canada Child Benefit: New monthly tax-free payments as of July 1 will replace UCCB and other tax credits and benefits: up to $6,400 a year for each child under 6, and $5,400 for children aged 6 to 18. But this amount begins to claw back for households with an income over $30,000 and is eliminated entirely for incomes over $190,000.
- Tax credits: Tax credits children's arts and fitness will be phased out by end of 2017. On the other hand, teachers will receive a $150 credit toward teaching materials.
- EI: Changes will ease qualification for EI benefits, and benefits will be extended for unemployed workers in 12 of Canada's hard-hit regions. In addition, EI premiums will undergo a bigger-than-expected cut in next January.
- Student grants: Low-income students will get a bump of 50%, to $3,000, and middle-income students will get a bump in grant money $1,200.
- Arts: an additional allocation of $1.9 billion over five years toward arts and culture organizations, which include the Canada Council, Telefilm Canada and the National Arts Centre. Another $675 million is earmarked to "modernize and revitalize CBC/Radio-Canada in the digital era."
- Seniors: Guaranteed Income Supplement (GIS) will be increased by up to $947 per year.
