Budget 2010: Leading the Way on Jobs and Growth

03/09/2010

As Canadians continue to revel in the pride of our record-breaking Olympic performance, our country’s economic performance offers another reason for us to feel proud.

Canada was drawn into deepest global recession since the 1930s, but we entered the recession in much better shape than the rest of the industrialized world. The government prudently regulated our financial system to make it the soundest in the world. Since taking office in 2006, this government reduced taxes and aggressively paid down debt so that today, even after the effects of the recession, Canada boasts the lowest debt-to-GDP ratio in the G7. This sensible approach allowed us to take the extraordinary, short-term measures necessary in Canada’s Economic Action Plan to protect Canadians during the recession.

Our Plan is working. More than 135,000 new jobs have been created since July, and 16,000 infrastructure projects have begun laying the foundation for long-term economic growth. We are seeing the signs of economic recovery. However, economic recovery remains fragile. Too many Canadians are still looking for work.

That is why this year’s budget is a Jobs and Growth budget. It builds on Canada’s Economic Action Plan to solidify our recovery. In Year 2 of the plan, we are investing $19-billion to stimulate our economy and complete the rapid rollout of stimulus projects to create jobs now.

We are laying a strong foundation for long-term job creation and economic growth by investing in innovation, training and education. We are also sustaining Canada’s competitive advantage by lowering taxes, eliminating all remaining tariffs on manufacturing inputs and cutting red tape for small businesses.

Here in Manitoba, communities and businesses will benefit from $14.7 million per year in ongoing funding for Western Economic Diversification (WED) for activities to support commercialization, enhance global competitiveness and drive economic growth and development in communities in western Canada. This budget also delivers deliver $11-million per year for Manitoba’s 16 Community Futures organizations through WED, to increase the vitality of communities and help and medium-sized businesses and communities to enhance their competitiveness.  Manitoba will also receive $18-million for labour market training, and $17-million from the Community Development Trust, and Police Officers Recruitment Fund. Like all other industrialized countries, Canada incurred a deficit to implement its stimulus package. Once the economic recovery is solidly entrenched, our government will move forward on a plan to reduce the deficit and move back toward budgetary balance.

Our deficit reduction plan has three key points. First, we will wind down our stimulus spending as planned and on schedule. Second, we will restrain growth in government spending in specific areas. And third, we will undertake a comprehensive review of government spending on overhead and administration.

We will not balance the budget at the expense of pensioners. We will not balance the budget by cutting transfer payments for health care and education or by raising taxes on hard-working Canadians. For Manitoba, transfers total almost $3.8-billion in 2010-11, an increase of $924-million since 2005-06.

This long-term, growing support helps ensure that Manitoba has the resources required to provide essential public services, and contributes to shared national objectives, including health care, post-secondary education and other key components of Canada’s social safety net.  The Province of Manitoba will receive:

• $1.8 billion through Equalization, an increase of $225 million, or 14.1 percent since 2005-06.

• $953 million through the Canada Health Transfer, an increase of $50 million from last year, for a total of $25.4 billion for all provinces and territories. CHT will continue to grow annually through a 6 per cent escalator. This long-term federal commitment will help ensure Manitobans receive quality healthcare.

• $405 million through the Canada Social Transfer, which will provide provinces and territories with $11.2 billion. CST will continue to grow annually through a 3 per cent escalator, beginning in 2008-09. For Manitoba, this payment represents an increase of $71 million since 2005-06 – an increase of 21.2 per cent – due mainly to the move to an equal per capita cash allocation of the CST.

Our plan will cut the deficit in half in two years and by two-thirds in three years. Shortly after that, the budget will be brought back fully to balance.

Canadians athletes showed the world their tenacity and competitive spirit at the Olympics. They are Canada’s inspiration as millions of Canadians step up to the world’s economic podium and prove we are open for business as we build today, a Canada in which our children and grandchildren will surpass us.