Federal Finance Minister Bill Morneau delivers budget speech in the House of Commons Tuesday.

Opposition blasts Liberal borrowing, spending

Borrowing to cover tax cuts, extra EI spending and more grants for transit and other infrastructure

  • Mar. 22, 2016 12:00 p.m.

Federal Finance Minister Bill Morneau has handed down his first budget with a massive deficit of $29.4 billion – three times what had been promised during the election campaign – as the new Liberal government embarks on a stimulus program.

The budget forecasts more than $100 billion in deficits for the next five years, contrary to Prime Minister Justin Trudeau’s election promise to balance the budget in four years. Morneau billed the budget as a plan to “revitalize the Canadian economy” and deliver a tax break to nine million taxpayers, and a more generous, tax-free child benefit.

Conservative leader Rona Ambrose said the finance ministry reported on budget day that the Liberals inherited a $4 billion surplus.

“There was still a surplus in January, and they’ve blown through that in the first 100 days,” Ambrose said. “What we’re seeing now is reckless spending without a job creation plan, and no actual plan in the budget to return to a balance.”

NDP leader Thomas Mulcair took aim at Morneau’s plan to target additional Employment Insurance coverage to areas of the country hit hard by the slump in oil and commodity prices.

“Right now there are 850,000 people who have lost their jobs who are not even eligible for EI,” Mulcair said. “The budget only takes care of 50,000 of them.”

Metro Vancouver mayors hoping for big infrastructure grants for rapid transit expansion may be disappointed that much of the future stimulus money will be back-end loaded in a second phase of grants after the next federal election.

A $370-million initial investment for Metro Vancouver transit is included and will assist TransLink in improving bus service and SkyTrain across the region.

The budget also indicates Ottawa can contribute up to 50 per cent of future capital funding, instead of the one-third from each senior government that was the practice in the past.

Big ticket items in the budget include the reduction of middle class tax rates – from 22 to 20.5 per cent for the $45,000 to $90,000 income bracket. Only part of that is offset by an increase in the tax rate for income over $200,000 from 29 to 33 per cent.

The budget also includes $8.4 billion for aboriginal communities.

 

Just Posted

North Island Seniors Housing Foundation takes the next step towards getting Trustee Road land

Seniors rejoice, Port Hardy council is very much in favour of helping… Continue reading

Port Hardy Volleyball club requests funding from Port Hardy council

The sport of Volleyball is alive and well in the North Island,… Continue reading

Should aquaculture programs be offered at North Island College in Port Hardy?

“I think it would be very timely to have an aquaculture program”

Island Health issues press release regarding Port Alice Health Centre service changes

Island Health will be hosting a community meeting in Port Alice Feb. 20 at 6 p.m. in the rec centre.

Vancouver Island Regional Library wants to team up with the Town of Port McNeill to build a new multi-use facility

“A new library for the town, as you know, will quickly become an exciting hub of literacy”

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

Cabinet likely to extend deadline to reconsider Trans Mountain pipeline

The can’t decide the pipeline’s fate until a new round of consultations with Indigenous communities

B.C. government provides $75,000 towards salmon study

Study looks at abundance and health of Pacific salmon in Gulf of Alaska

Murdered and missing honoured at Stolen Sisters Memorial March in B.C.

‘We come together to make change within the systems in our society’

UBC researchers develop inexpensive tool to test drinking water

The tricoder can test for biological contamination in real-time

Disgraced ex-Congressman Anthony Weiner released from prison

He was convicted of having illicit online contact with a 15-year-old North Carolina girl in 2017

B.C. communities push back against climate change damages campaign

Activists copying California case that was tossed out of court

Most Read