Finance Minister Bill Morneau has tabled his second federal budget, a document that fleshes out the details of the government’s infrastructure spending and plans for innovation while avoiding major tax changes.
The budget revises the deficit for the year just ended, rising slightly to $23 billion, and forecasts a deficit for the coming year of $28.5 billion, including a $3-billion “risk adjustment.”
Here are highlights from the 2017 federal budget:
- Deficit: $28.5 billion, up from $25.4 billion projected in the fall.
- Trend: Higher deficits for next three years before dipping to $18.8 billion in 2021–22.
- Housing: $11.2 billion over 11 years, already budgeted, will go to a national housing strategy.
- Child care: $7 billion over 10 years, already budgeted, for new spaces, starting 2018–19.
- Indigenous: $3.4 billion in new money over five years for infrastructure, health and education.
- Defence: $8.4 billion in capital spending for equipment pushed forward to 2035.
- Care givers: New care-giving benefit up to 15 weeks, starting next year.
- Skills: New agency to research and measure skills development, starting 2018–19.
- Innovation: $950 million over five years to support business-led “superclusters.”
- Startups: $400 million over three years for a new venture capital catalyst initiative.
- Families: Option to extend parental leave up to 18 months.
- Uber tax: GST to be collected on ride-sharing services.
- Sin taxes: One cent more on a bottle of wine, five cents on 24 case of beer.
- Bye-bye: No more Canada Savings Bonds.
- Transit credit killed: 15 per cent public transit tax credit phased out this year.