Your Money Matters






July 2011 Issue



2011 Federal Budget


Highlights of the budget

• Total spending of $281.4 billion (includes $33 billion in debt payments), up 3.6 per cent from 2010-11.

• Total debt of $585.4 billion, up $32.3 billion from 2010-11.

• Projected deficit of $32.3 billion, $2.7 billion higher than forecast in March.

• Projected deficit for 2010-11 of $36.2 billion, $4.3 billion better than forecast in March.

• Plans to balance the budget by 2015-16.

New measures

• $2.2 billion set aside for a deal with Quebec on sales-tax harmonization.

• Phasing out of the per-vote subsidy for political parties, making parties almost fully reliant on private donations.

Reintroduced measures from the March 22 budget

• $400 million to extend the ecoENERGY Retrofit-Homes program for one year. The program offers rebates to help make homes more energy efficient.

• A top-up benefit of up to $600 for single, low-income seniors and up to $840 for couples through the Guaranteed Income Supplement. Expected to cost more than $300 million a year.

• A Family Caregiver Tax Credit which would save about $300 a year for people caring for sick or disabled relatives.

• A Children’s Arts Tax Credit for children’s arts, culture, recreation and developmental activities which would save parents about $75 a year per child.

• An initiative to attract health-care workers to rural and remote communities by forgiving up to $40,000 in student loans for doctors and $20,000 for nurses.

• A temporary Hiring Credit for Small Business of up to $1,000 against the increase in 2011 EI premiums to encourage hiring.

• Legislation to make the $2-billion Gas Tax Fund permanent to provide predictable infrastructure funding for municipalities.

Source: The Canadian Press

Theresa Wever and the Money Concepts Team.

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