Federal Budget Canada Highlights

Canadian ruling Conservative government tabled its new federal budget for 2013 on Thursday, March 21, 2013. According to Finance Minister, Jim Flaherty the latest budget will boost Canada’s economy. Flaherty says he is emphasizing on top three main pillars that are skills training, manufacturing and infrastructure.

Here are some of the highlights from the federal budget Canada 2013:

• 2013-14 forecast; revenues at $263.9 billion, spending at $282.6 billion and deficit at $18.7 billion, where the deficit is projected to drop to $6.6 billion in 2014-15 and become $800-million surplus in 2015-16.
• Development of a new Canada Job Grant program next year to train workers that will be negotiated with provinces by next year to replace existing $500-million labour market agreements. $241 million over five years for First Nations skills training. New programs will promote apprenticeship and also measures will be introduced to improve skills training for the disabled.
• $900 million in new spending, no new taxes or tax cuts.
• $400 million in revenue from closed tax loopholes and enforcement.
• An improved and expanded tax break on expenses for families adopting children.
• The special tax break for first-time charitable donations to encourage young people to come up.
• Super tax credit to encourage young Canadians to donate.
• Snitch line and rewards to catch international tax cheats.
• Gas tax fund for cities to increase two percent each year.
• 2-year extension of an accelerated capital cost allowance to help manufacturers.
• New 10-year, $14.4 billion infrastructure fund starting in 2014.
• $1 billion over 5 years for the aerospace industry and research.
• Infrastructure spending of $47 billion over 10 years, starting next year (2014).
• Refunds for veterans’ funerals and burials doubled to $7,376.
• For a small business, an extension of EI credit for new hires.
• $119 million over five years to transition homeless off the streets.
• $100 million over two years to support housing construction in Nunavut.
• Tariffs eliminated on baby clothes and sports gear, including skates, hockey sticks, skis and golf clubs.

Flaherty says it’s not a budget but an economic action plan on what he was optimistic about achieving the government’s economic agenda. As most of my blog readers want to know about its impact on the mortgage market, here’s an interesting article from FinancialPost that may help them in finding out their concern on a major financial product mortgage loan; the federal government is once again cracking down on Canada Mortgage and Housing Corporation (CMHC) and the mortgage insurance sector.