Federal Budget Delivered

Tuesday, May 02, 2006 12:57 PM

The Conservatives have outlined their spending plan.

Finance Minister Jim Flaherty has risen in the House of Commons to deliver the Harper Government’s first budget, it is the first Federal Conservative budget since the days of Brian Mulroney.

The budget reflects the Harper government’s five priorities.

The GST will be reduced July 1st from 7% to 6%, although there is a concern the delay in the implementation may have buyers holding back from the big ticket items until that time.

As promised, there will be $100 dollars per child under the age of 6, plus $250 million dollars towards the creation of 50 thousand child care spaces.

There is a family fitness credit, where families can get up to $500 dollars in tax credits for having their children registered in sport programs.

There is a transit pass credit (15.5%) for those who buy monthly passes.

The Lowest Income tax rate will be increased from 15 to 15 1/2%

The Pension income deduction is raised to $2,000

Anyone with an annual income of less than $10,000 will pay no income tax

There was some special news for forestry, in particular, B.C. as Flaherty brought up the softwood lumber deal, and ensured the pine beetle dollar promise made last fall is kept as Flaherty announced "The government will invest $400 million dollars over the next two years to address worker Adjustment and addresss the pine beetle infestation".

The Finance Minister also noted there will be some breaks for students through the elimination of taxes from all scholarships and bursaries. Tax credits for text books, and a reduction in the parents contribution before students qualify for student loans.

The budget encourages apprenticeships a special incentive grant for apprenticeship programs (up to $2,000 per business) and tax credits for those taking an apprenticeships. The budget carries a $500 dollar deduction for apprentices buying tools.

The budget also provides money for infrastructure, $5.5 billion

$1.5 billion for farm support

$1.1 Billion for Defence

$1.1 Billion for Housing

$161 million for the RCMP to increase their numbers by 1,000 members.

The Finance Minister also announced there would be an expansion of jails, $20 million dollars to prevent youth crime, and $26 million dollars to help victims of crime.

The surplus is expected to be $8 billion dollars. In the effort to be be "accountable" Flaherty promised quarterly reports on spending and income.

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