On March 22, , Finance Minister Bill Morneau tabled Budget 2016, providing immediate help to those who need it most, and setting the course for sustainable, inclusive economic growth that will benefit Canada’s middle class and those working hard to join it.
Why we are focused on the middle-class
– Over the last 30 years, Canada’s economy has grown but the benefits have not been shared by all.
– Over the last 30 years incomes of the top 0.1% have increased one and half times (155%) while the incomes of the bottom 90% have stagnated (bottom 90% family income has grown by approximately 33% over 30 years for an average of approx. 1% per year).
- That is why we are focused on investing to strengthen the middle class:
- o Asking the rich to pay a little bit more and cut taxes for the middle-class
- o Investing in growth and jobs for the middle-class
What we are doing for the middle-class
– Already raised taxes for individuals making more than $200,000 a year and reduced the middle-income tax rate from 22 per cent to 20.5 per cent, cutting taxes for middle-class Canadians on average $330 per year.
– Will introduce the Canada Child Benefit that will provide families with a maximum benefit of up to $6,400 per child under the age of 6 and up to $5,400 per child aged 6 through 17.
– With the CCB over 3 million families will receive more benefits than before.
– Families benefiting from the CCB will see an average of $2,300 more per year – tax free.
– The CCB will lift almost 300,000 children out of poverty.
For young Canadians
– Budget 2016 will ensure no student graduating from college or university has to start paying back their student loans until they make at least $25,000 in annual income.
– Budget 2016 boosts grants to low and middle-income college and university students by as much as $1000 per year. This measure will put more money in the pockets of 360,000 students a year.
– Our plan invests over $300 million (over three years) in the Canada Summer Jobs program to create 35,000 additional youth jobs each year.
On growing the economy and creating Jobs
– In Phase 1 of its infrastructure plan Budget 2016 invests $11.9 billion starting right away to build roads, bridges, improve public transit, improve water and wastewater facilities and refurbish affordable housing. This will create tens of thousands of jobs and boost the economy.
- o We will invest $3.4 billion over the next three years in public transit.
- o We will invest $5 billion over the next five years in green infrastructure including investing in clean water infrastructure and electric vehicle charging stations.
- o We will invest $3.4 billion over the next five years in social infrastructure, including affordable housing (will benefit over 100,000 homes), seniors housing, community centres and childcare centres.
– Our plan will also invest $2 billion in labs and buildings on college and university campuses.
– Budget 2016 will invest $184 million more this year in training to help Canadians transition and update their skills.
– Budget 2016 will invest $95 million a year more in science.
– Budget 2016 will commit over $1 billion over the next 5 years in investments in research and commercialization of new technologies.
– (Over the next two years) Our government will invest $400 million in the development of new clean technologies and creating strong Canadian clean tech companies.
– We will roll back the age in which seniors can access their OAS/GIS from 67 to 65
– We will boost the GIS for 900,000 low-income seniors
For Indigenous Peoples
– We will invest $8.4 billion over 5 years, a significant boost over the Kelowna Accords ($5 billion over five years).
– We will invest $2.6 billion to finally boost First Nations K-12 education.
– We will invest $1 billion to build First Nations schools.
– We will invest $2.2 billion in clean water infrastructure to finally end on-reserve boil water advisories.
On the Environment
– We are making admission to Canada’s national parks free in 2017.
– Budget 2016 will invest $62.5 million in electric vehicle charging stations and alternative fuel refuelling stations.
– We are cutting taxes for companies that invest in electric car charging infrastructure and energy storage infrastructure.
– We are investing$30 million to strengthen and reform the environmental assessment process.
– Budget 2016 will invest $81 million to boost Canada’s marine and coastal protected areas from 1 percent today to 10 percent by 2020.
– In Phase 1 of its infrastructure plan Budget 2016 invests $11.9 billion to build roads, bridges, community centres and improve water and wastewater facilities. A significant proportion of this investment will go to rural regions.
– Budget 2016 will invest $500 million to extend high-speed internet to hundreds of rural and remote communities.
– Budget 2016 will invest $50 million per year to boost the Northern Resident’s deduction.
– Budget 2016 invests $70 million to boost agricultural research and agricultural research labs.
– Budget 2016’s investment in clean tech will develop new clean technology in the forestry, agriculture and mining sectors.
On size of deficit
– The $29 billion budget deficit is composed of two major things:
- o A $16 billion deficit left to us before our government made any budget decisions and
- o $13 billion in new investments made by our government since we took office in November
For more information on the budget, visit the Budget 2016 homepage
To read the full 2016 budget: Budget 2016