Building the Canada We Want
Highlights from the Government of Canada's 2003 Budget
Economic Development
Investment of an additional $1.7 billion in 2002-03
and over the next two years, to strengthen further research and innovation in
Canada.
Investment of $285 million in 2002-03 and over the
next two years, to improve skills and learning opportunities for Canadians.
Building on the Government's Five-Year Tax Reduction
Plan to improve the tax system and to enhance
incentives to work, save and invest.
Investment of $3 billion to promote sustainable
development and a healthier environment.
A reduction of the employment insurance (El) employee
premium rate for 2004 to $1.98 per $100 of insurable earnings, down
from $2.10 in 2003.
Enhanced incentives for Canadians to work, save and
invest, including: raising registered retirement savings plan and
registered pension plan contribution limits to $18,000 over
four years and indexing these new limits; supporting small business
and entrepreneurs through a number of tax changes;
eliminating the general federal capital tax over the next five years; and
reducing the corporate tax rate to 21 per cent over the next five years, while
making important changes to the tax structure of
this sector.
Increasing Accountability
A new formula for systematically reviewing programs
to make sure they're still answering the needs of Canadians.
Yearly reallocation of $1 billion in funding from
existing spending from low priority to high priority areas, starting in 2003-04.
To make its accounts more
comprehensive and up to date, the Government is implementing full accrual
accounting
starting with this budget. This
responds to the recommendation of the Auditor General of Canada.
Economic and Fiscal Prospects
Canada's economy is forecast to grow by 3.2 per cent
in 2003. It is expected to increase to 3.5 per cent in 2004.
Federal debt (accumulated deficit) has been reduced by
$47.6 Billion and the federal debt-to-GDP (Gross Domestic Product)
ratio declined to 46.5 per cent in 2001-02.
Canada is the only G7 country expected to record a
surplus in 2002 and 2003.
Families and Communities
Increases in annual assistance for children in low-income families through the Canada Child Tax Benefit to $10 billion by 2007benefits increasing to $3,243 for the first child, $3,016 for the second and $3,020 for each additional child, more than double the level of support in 1996.
$900 million over five years to assist provinces and
territories to increase access to quality child care and early learning
opportunities, and $35 million over five years for similar
programs for First Nations children, primarily on reserve.
A new Child Disability Benefit of $1,600 for low- and
modest-income Canadian families.
$80 million per year to improve tax assistance for
persons with disabilities, beginning in 2004-05 and drawing on an evaluation
of the disability tax credit and expert advice.
$320 million over five years to enhance existing
affordable housing agreements with the provinces and territories.
$256 million over two years to extend the government's
housing renovation program.
A three-year extension of the Supporting Communities
Partnership Initiative at $135 million per year to combat homelessness.
An additional $3 billion in infrastructure support
over the next ten years, including $1 billion for municipal infrastructure.
Canada's Role in the World
An ongoing increase of $800 million for Canadian
military capabilities plus an immediate allocation of $270 million to address
urgent needs.
A reduction of the Air Travellers Security Charge by
more than 40 per cent.
An additional $75 million over the next two years for
the Security Contingency Reserve to enable the Government to help
respond to unforeseen security needs, including border security.
$1.4 billion over this and the next two fiscal years to boost Canada's aid to poor countries- an increase of 8 per cent annually.
For more Information, visit the Department of Finance Web site at http://www.fin.gc.ca.