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Achieving a Productive and Sustainable EconomyCanada’s Remarkable Economic and Fiscal SuccessSince eliminating the deficit in 1997, the Government has taken a balanced approach to reducing debt, reducing taxes, and investing in social and economic priorities. This balanced approach is working. Canada stands out among the Group of Seven (G-7) major industrialized countries with:
With the Government of Canada’s seven consecutive surpluses, the federal debt has been reduced by more than $61 billion. Canada has moved from having the second worst debt-to-GDP ratio in the G-7 to having the best. The Government’s strong fiscal position and lower debt burden have meant more resources for building a better country rather than paying creditors. Budget 2005—Delivering on CommitmentsThe Government of Canada has presented an ambitious agenda and clear commitments to Canadians. Budget 2005 delivers on the Government of Canada’s commitments in the following areas: 1 Investing in people2 Investing in ideas and enabling technologies 3 Investing in regions and sectors 4 Maintaining a fair and competitive tax system 5 Making markets more efficient and effective No single budget can accomplish every goal at once. That is why Budget 2005 measures have been designed to build on actions taken in previous budgets, while setting the stage for further improvements as the Government can afford them. 1 Investing in PeopleAs baby boomers prepare to retire in large numbers during the coming years, it is clear that the number of working Canadians will decline in proportion to the population as a whole. This means that, to secure future growth in living standards, Canada must have a highly skilled and adaptable labour force that can respond to and drive the economy of tomorrow. This challenge demands new approaches to strengthening opportunities for learning and skills at all stages of life. Budget 2005 makes several key investments aimed at meeting this challenge:
2 Investing in Ideas and Enabling TechnologiesResearch is crucial to improving our environment, advancing our health care system and making Canadian firms more productive and competitive. That is why the Government of Canada will continue to do its part—along with universities and the private sector—to promote research and new technologies. Budget 2005 provides $810 million in strategic investments in ideas and enabling technologies over the next five years. These include:
These initiatives build on the $11 billion added by the Government of Canada in university-based research since 1998. 3 Investing in Regions and SectorsThe Government of Canada is committed to strengthening its support for regional and sectoral development to ensure that all of Canada’s regions and economic sectors can contribute to—and benefit from—economic growth and rising living standards. Budget 2005 delivers on this commitment through investments totalling $1.2 billion in regional development initiatives in all parts of Canada. This includes:
Budget 2005 also increases funding to key sectors of Canada’s economy, such as agriculture and energy. 4 Maintaining a Fair and Competitive Tax SystemBudget 2005 will reduce taxes for all taxpayers—especially those with low and modest incomes. It will also maintain Canada’s corporate tax advantage relative to the United States. Once the measures in Budget 2005 are fully in place:
Legislation to implement these measures will be introduced at the earliest opportunity. 5 Making Markets More Efficient and EffectiveThe Government of Canada is committed to creating a more favourable climate for business and investment—not only by reducing taxes but also through more efficient regulation. Budget 2005 delivers on this commitment through various regulatory reforms and related initiatives that will help stimulate economic growth. These include:
The Government of Canada will also work with the provinces and territories to improve securities regulation. How Can I Get More Information on Budget 2005?Information is available on the Internet at www.fin.gc.ca or by phoning: 1 800 O-Canada (1 800 622-6232) You can also obtain copies of this brochure and other budget documents from the: Distribution Centre Phone: (613) 995-2855 |
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