Ottawa Presents "Stay-the-Course" Budget

It's another "hold-the-line" budget from Ottawa.

Finance Minister Jim Flaherty presented his budget Thursday, announcing the deficit for this year is expected to be almost $26 billion this year, with a projected $800 million surplus by 2015-16, but reaching that goal relies heavily on a strong economy and increased tax revenue.

There were no major spending announcements or tax cuts in the budget, but Cypress Hills-Grasslands MP David Anderson says he was pleased that the Federal Government is continuing their approach toward deficit reduction.

"The main increase in our spending over the next few years will come from transfers to the provinces and territories, so our program spending is predicted to remain stable over the next few years," he said.

Full interview with David Anderson

The centrepiece of the budget was the announcement of a revamped plan for skills training, but that is not going to kick in until April 2014, and is contingent on negotiations with the provinces, who are expected to foot part of the bill.

"The Canada Job Grant could provide up to $15,000 per person," he said. "It would be a federal contribution of $5000 matched by the employers' contribution and the provincial contribution. This is to encourage businesses to really try to improve the job capabilities of their employees to give them the skills that they need for the in-demand jobs. It doesn't kick in here for a while, but it will be a real help."

He adds the budget has some job-creation initiatives that will kick in right away, such as more opportunities to make it easier for apprentices to get their journeyman status, and they will also providing employment help for people with disabilities and aboriginal youth.

There is also a focus on infrastructure, with $47 billion in infrastructure funding over 10 years.

"We just think that it's important that the communities know what it is that they're going to have in terms of funding," Anderson said. "There will be $32 billion for our Community Improvement Fund desgnation, and there's $14 billion in a new Building Canada fund, and that's an arrangement made between the different levels of government and our government as well."

Anderson also noted an increase on the Capital Gains Exemption to $800,000 in 2014, which he says will help a number of farmers and business owners in the southwest.

He adds the budget also includes an elimination of import tax tariffs on baby clothing and sports equipment, new tax credits for Canadians who give to a charity, adopt a child or require home care, and an extension of the Hiring Credit for Small Businesses by one year.