The Honourable Jim Flaherty, Minister of Finance, tabled the first federal budget of the Conservative majority government today. The Budget includes all of the measures that were introduced in the March 22, 2011 budget. The March 22, 2011 budget was not adopted by Parliament before its dissolution on March 26, 2011.
The Budget provides an update of the government's projected budgetary deficits. The government now projects that the deficit in 2010-11 will be $36.2 billion (as compared to $40.5 projected in the March 22, 2011 budget) and that the deficit in 2011-12 will be $32.3 billion (as compared to $29.6 billion projected in the March 22, 2011 budget). The government now projects that by reducing expenses, a surplus will be achieved in 2014-15, one year earlier than was projected in the March 22, 2011 budget.
The Budget includes a provision in 2011-12 for $2.2 billion in support of a satisfactory agreement between Canada and Quebec on sales tax harmonization. It also provides for the gradual elimination of the per vote allowance paid to political parties by 2015-16.
The Budget reintroduces all of the tax measures announced in the March 22, 2011 budget, and does not introduce any additional tax measures. For a detailed discussion of the March 22, 2011 budget measures, see our Budget Briefing 2011. The Budget provides that all of the measures in the March 22, 2011 budget that were to be effective on the "Budget Date" are to be effective on March 22, 2011.
To access the Budget and related documents, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
