‘Substantial’ reforms, no tax hikes
Pension changes, public service cuts among big changes
$276-BILLION PLAN economic growth.”
NDP leader Thomas Mulcair immediately panned the budget, saying it fell short of what is needed to create jobs, protect the environment and care for seniors.
“Its an enormous betrayal,” Mulcair said.
“Its totally inadmissible that in a country as rich as Canada we still have so many elderly people who are living in poverty. Mr. Harper prefers there would be more.”
Interim Liberal leader Bob Rae said the budget lacks vision, dishonestly plays a “shell game” on how funds will be spent and harms the federation by off-loading costs to the provinces.
“This is a very mean-minded, small-minded budget,” Rae said.
The $276-billion budget comes nearly one year into the government’s majority mandate, and the Conservatives say they are using it to make ambitious reforms.
Among the budget highlights:
■ Old Age Security (OAS), the backbone of the country’s public pension system, will be changed, starting in 2023, so that the age of eligibility is gradually increased to 67 from 65. The controversial change will affect Canadians under the age of 54.
■ Government funding and incentives on industrial research will be shifted to promote commercial innovation to boost the economy.
■ Environmental reviews of major oil, gas and mining projects will be shortened to ensure the ventures get off the ground sooner to promote economic development, and some reviews will be handed to the provinces only.
■ The immigration system will be reformed to process applicants faster and emphasize getting skilled immigrants into the country to fill vacant jobs.
■ Gover nment program spending will be slashed by $5.2 billion within three years, a 6.9-per-cent reduction of the $75 billion in programs that were reviewed.
■ Within the public service, 19,200 jobs will be eliminated over three years (4.8 per cent of the workforce), including 600 senior executives.
■ The federal deficit, forecast to be $24.9 billion for the fiscal year ending this month, will be eliminated by 2015-16.
■ The country’s economy is forecast to grow by 2.1 per cent this year and 2.4 per cent next year.
■ The military’s budget will be cut by $1.1 billion within three years, while the Foreign Affairs Department will see its funding cut $168 million by 2014-15. Foreign aid will be sliced by $378 million within three years.
■ Charities will be required to provide more information about their political activities and their funding from foreign sources.
■ There are no major tax reductions and the government says there are no tax increases.
■ The employment insurance system will be retooled to cap premium increases and to introduce pilot projects that remove “disincentives” for people on EI to find work.
■ The penny will removed from circulation this fall, saving the Canadian economy about $11 million a year.
■ The Canadian Broadcasting Corporation, the country’s national broadcaster, will see its government funding slashed by $115 million — about 10 per cent.
One of the most significant changes is on Old Age Security. Flaherty said Canadians are living longer and that the government had to act to ensure the sustainability of the retirement system for future Canadians. mkennedy@postmedia.com
jfekete@postmedia.com