The budget may not be the most exciting thing in our country, but it is one of the most important. While we were all off enjoying our reading break, the federal government announced its budget for the coming fiscal year.
If all goes according to plan, the 2014-2015 fiscal year will be the last deficit budget for a long time. While part of that plan involves the Conservative government being given another four-year mandate to govern, a balanced budget will play a big part in convincing many voters how to vote.
If the Conservatives can manage a re-election, they will have pulled off an economic coup. With Canada already leading the G-7 nations both in job creation and net debt-to-GDP ratio, the government is hoping to continue our economic stability by having a surplus budget as nations around the world continue to struggle to climb out of the recession.
Though many in the country may not be happy about the cuts to some programs, the Conservatives are looking out for the long-term, for a future with more people taking advantage of our many social programs than people funding them.
Finance Minister Jim Flaherty has also continued to champion the cause of those with developmental challenges, following up on previous measures like the Disability Tax Credit and the Registered Disability Savings Plan. He proposed that the budget allocate funds towards the Ready, Willing, Able initiative, which helps Canadians with intellectual disabilities contribute to the workforce, and vocational training programs for Canadians with autism.Increased taxes on tobacco are estimated to bring in over $3 billion.
The biggest criticism of the budget so far has been that it is boring. Flaherty takes this as a compliment, saying it avoids “flashy spending,” keeping the country “on the right track.”
Little by little, he has been eating away at the deficit incurred at the height of the recession, and there is the expectation that if the Conservatives maintain the leadership of the government, Canada will see a $30 billion surplus over the next five years, barring any unexpected events.
And since the government builds a $3 billion cushion into its budget, it is likely that the budget could end up being balanced this year if all the numbers line up properly.
Unless you happen to be a smoker, you will also be a fan of the increase on tobacco, which is estimated to bring in over $3 billion over the next five years. Furthermore, the government is looking to close the price gap between goods sold in the United States and Canada, which is exciting news for an avid reader like me who hates paying that extra $3 for a book in our country.
For those of us who have been following the Senate scandal, this budget also looks to close the loophole that is currently allowing the three disgraced senators to collect pensionable years despite being suspended, with a private member’s bill calling for the stripping of pensions of any senator or MP convicted of a crime currently being debated in the House of Commons.
While the budget may be boring, now is not the time to start taking chances with the Canadian economy. We have travelled a long road to get out of the recession, and we have done so with one of the strongest economies in the western world, in no small part due to the efforts of Flaherty and the Conservative party.
