Thursday, March 04, 2010

Federal Budget 2010

Ok, da buhjits out so whadda I gotta say abootit?

No tax increases
  • Feds cite Canada's strong fiscal situation - lowest debt-to-GDP ratio in the G7.
  • Feds say they took ‘unprecedented actions' to support economy without jeopardizing Canada's long-term fiscal position and causing uncertainty about future tax increases.
People also forget that their net pay-cheque will increase because the personal exemption automatically goes up.  But then in 2011, EI premiums go up, so you won't see much difference on your paystub folks.
No cuts in major transfers to people and provinces
  • transfers to persons to increase from $72 billion in 2010-2011 to $77.1 billion in 2014-2015
  • transfers to provinces to increase from $51.4 billion in 2010-2011 to $62.4 billion in 2014-2015.
And here come the baby boomers!!!
$17.6 billion over 5 years in projected savings
  • average annual growth in direct program spending after expiry of Economic Action Plan will slow to 1.3 per cent.
Ok, that's good I guess but that's what,  $3.5 billion per year?  Yawn.

$2.5 billion in savings for defence
  • reduce previously planned growth in spending on Canadian Forces in 2012, after end of Afghan mission.
That's only natural.  How about retiring some generals?
$4.4 billion in savings from international aid
  • Expected savings to grow from $438 million in 2011-2012 to over $1.8 billion in 2014-2015.
Wow, .. most is from Africa, I'd assume.  If the money we've poured in there has only boosted the coffers of corrupt governments and warlords, then not a bad idea to cut 'em off.

$2.5 billion in savings by closing tax loopholes
  • includes new rules where employees surrender stock options to employer, in exchange for cash payments or other benefits.
My company won't let me do this anyway. But wow, $2.5 billion is a whack of cash is it not?
Wage freeze for prime minister, MPs and senators
  • Departments will have to redistribute funds to pay for mandatory annual pay increases.
  • 245 governor-in-council positions cut.
Wow.  Finally.
Departmental operating budget frozen until 2013
  • However, employee pension and other benefits not subject to the general operating budget freeze.
No more 'empire building' for the mandarins!
$22 million in funding over 2 years for ‘Own the Podium'
  • Ottawa doubling contribution to winter sports portion of fund
  • $497 million for radar satellites
Ok, I guess it paid off as I get to brag to my American friends about how many gold medals we won, but what do radar satellites have to do with 'Own the Podium'?
$222 million over 5 years for nuclear and physics research
  • New research on medical isotopes to shift burden away from troubled Chalk River reactor
Well that's good I guess.
$300 million in tariff savings for business
  • Manufacturers to save money on production costs, new equipment
  • A new red-tape reduction commission
"Red-tape reduction" ... almost sounds like cosmetic surgery!
$2 million for a community war memorial program
  • work with communities and contribute a share of capital costs for construction of new cenotaphs and monuments that commemorate veterans.
Can't disagree with that.  If you do, then you don't like veterans. For shame!
$80 million more for an eco-energy retrofit program
  • to finance up to 60,000 additional retrofits -- in addition to the $205 million provided through the Clean Energy Fund announced in December 2009.
Alrighty then... makes me wanna sell furnaces.
$87 million over 2 years for border security
  • to further boost security, CSIS also getting $28 million over two years
But what about that stupid ~$10 fee per round trip I'm paying to have a scanner x-ray me?
Reduce cheque hold maximum from 7 days to 4 days
  • and provide consumers access to the first $100 within 24 hours.
Stick it to the banks!
New longer-lasting bank notes in 2011
  • Bills will be made of polymer material
  • Less expensive coins could lead to savings of $15 million per year
Wow! I do prefer Bank of Canada money to the U.S. Federal Reserve toilet paper.
Cut deficit to $27.6 billion by 2013, and to $1.8 billion by 2015
  • Forecast based on expectation of return to modest economic growth
And without raising taxes?  Liberals have said they would increase the deficit to help spur job growth.
$567 billion federal debt this year; $622 billion by 2015
  • National debt expected to rise even as deficit reduced
Geez that hurts. All those payments made on the debt over the past 13 years...  luckily, interest rates are low so it's not as bad.  But it also means, I doubt we'll see any tax cuts in a while.

All this said, overall, it's a steady as she goes budget, but to get there, let's stop spending on stuff that's bogging us down.

But who knows what next year holds.  A year and a half ago, the Finance Minister didn't even think we'd have a deficit.

I still think government is too big and fat for what we get in return.  This budget is basically saying, "We're going on a diet pretty soon".

I'm just tired of giving them so much food to munch on.


Anonymous said...

$54 Billion deficit. Steve Harper is no Paul Martin, He is Mulroney reincarnated.

Anonymous said...

Compared to probably double that Iggy'd bring in I'd say we made out pretty good...

Anonymous said...

If Canada is in best shape of the G7 then what is going on with the rest of them? Times must be bad all around. (real conservative)

PhD Misdemeanours said...

Government Funding Scandal

Privacy Commissioner of Canada / Brock University / CAMH


Medicine Gone Bad