Ottawa,
November 23, 2006
2006-069
Canada’s New Government Releases Advantage Canada:
An Economic Plan to Eliminate Canada’s Net Debt and
Further Reduce Taxes
Related documents:
The Honourable Jim Flaherty, Minister of Finance, today released Advantage
Canada: Building a Strong Economy for Canadians, a long-term, national
economic plan designed to make Canada a true world economic leader. The
plan, unveiled along with Minister Flaherty’s Economic and Fiscal
Update, features a new national objective to eliminate Canada’s total
government net debt in less than a generation and further reduce taxes for
all Canadians.
“The Canadian economy as a whole is performing extremely well and is
among the fastest growing in the G7,” said Minister Flaherty. “If
we are to remain at the economic forefront, we need a long-term plan that
will shape Canada’s future, and improve the quality of life for
families, students, workers and seniors.”
Advantage Canada builds on Canada’s strengths and seeks to gain a
global competitive advantage in five key areas:
- Tax Advantage—Reducing taxes for all
Canadians and establishing the lowest tax rate on new business
investment in the G7.
- Fiscal Advantage—Eliminating Canada’s
total government net debt in less than a generation.
- Entrepreneurial Advantage—Reducing
unnecessary regulation and red tape and increasing competition in the
Canadian marketplace.
- Knowledge Advantage—Creating the
best-educated, most-skilled and most flexible workforce in the world.
- Infrastructure Advantage—Building the
modern infrastructure we need.
“Advantage Canada is a long-term plan that will create the right
conditions and opportunities for families and businesses to succeed,” said
Minister Flaherty. “And our tax back guarantee will give Canadian
taxpayers a real stake in reducing debt by dedicating the interest
savings each year to reducing personal income taxes even further.”
Advantage Canada is based on
core principles that will guide the Government’s future policy decisions.
The principles are:
Focusing government. Government will be focused on what it does best.
It will be responsible in its spending, efficient in its operations,
effective in its results and accountable to taxpayers.
Creating new opportunities and choices for people. Government will
create incentives for people to excel—right here at home. We will reduce
taxes and invest in education, training and transition to work
opportunities so Canadians can achieve their potential and have the choices
they want.
Investing for sustainable growth.
Government will invest and seek partnerships with the provinces and the
private sector in strategic areas that contribute to strong economies,
including primary scientific research, a clean environment and modern
infrastructure.
Freeing businesses to grow and succeed.
Government will create the right economic conditions to encourage firms to
invest and flourish.
Minister Flaherty presented his Economic and Fiscal Update before
the Standing Committee on Finance. He highlighted Canada’s strong
economic fundamentals, including:
- An unemployment rate that is
near its lowest level in over 30 years, with more than 260,000 new jobs
created so far this year.
- Low, stable and predictable
inflation with the renewal of Canada’s inflation-control target to 2011.
The economic outlook is encouraging, said Minister Flaherty, with
private sector economists forecasting a growth rate of about 2.75 per cent
for 2006 and 2007.
The Minister also presented the Government’s fiscal forecast for the
current year and the following five years. After accounting for the
cost of measures announced in the May 2006 budget and the minimum
debt and tax reduction commitments, the Government’s fiscal forecasts
are as follows:
In 2006–07: $4.2 billion
In 2007–08: $3.5 billion
In 2008–09: $2.4 billion
In 2009–10: $2.0 billion
In 2010–11: $3.6 billion
In 2011–12: $2.9 billion
Overall, the Government’s forecast is within the range of four private
sector projections.
“Unlike previous governments, we don’t see growth and surpluses as a
licence to spend,” said Minister Flaherty. “We are determined to grow
our economy, control our spending and give the benefits of debt and tax
reductions directly back to Canadian families and taxpayers.”
Advantage Canada: Building a Strong Economy for Canadians
and The Economic and Fiscal Update are available on the
Department of Finance website.
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For further information, media may contact:
Eric Richer
Press Secretary
Office of the Minister of Finance
613-996-7861 |
David Gamble
Media Relations
Department of Finance
613-996-8080 |
|