Local reaction to the inaugural Trudeau budget

The Liberal government’s first budget is a sunny ways blueprint with billion-dollar spending increases in a bold effort to spur economic growth.

But the budget adds more than 100-billion dollars to the federal debt over the next five years.

Billions more will be spent on infrastructure, Aboriginal Peoples and transfers to middle and lower income Canadians.

As far as MP Anthony Rota is concerned this budget is the best of both worlds with people benefiting in the short term and the long term.

He says there’s a lot of project building in this budget.  

Rota says there’s nearly $12 million targeted for roads, bridges and community centres and improving housing and water and waste water facilities.

He says that will be a direct investment into the north by the government.

Other highlights include $500-million to extend high speed internet to rural areas.

Rota says that’s especially applicable in his riding.

He says there’s $2-billion for labs and buildings on colleges and universities and that is something Nipissing and Canadore can take advantage of.

Rota also says of the 29 billion dollars in deficit spending 16 can be attributed it to the previous government.

He says there’s $13-billion in new investment, nothing the government has to do what’s right for the people of his riding and the people in the country.

Meantime, North Bay Mayor Al McDonald says it’s still a good investment.

He’s reacting to yesterday’s (Tuesday) Federal Budget which indicated the Liberals will invest $2.7 billion dollars on infrastructure, down from the original proposal of $5 billion.

He says they welcome the money, noting they always wish there was more.  However, he says they’ll do everything they can do get their fair share of the infrastructure money for our community.

McDonald says green infrastructure like water treatment plants and social infrastructure like senior’s homes and public transit are good areas for them to look into.

And the Chartered Professional Accountants of Canada is taking a wait and see approach on this budget.

Spokesperson Tobin Lambie sees this budget as a downpayment by the new government.

He says the real test will come next year when the government will be judged from the results of information from the advisory council of economic growth, a promised review of the tax system and a promised innovation agenda.

Lambie says the government must demonstrate the ability to manage costs and to deal with demographic changes.

He says they would like to see the budget balanced by the end of the governments mandate. Lambie says effective July 1, the Canada Child Benefit will provide more after tax money but the children’s fitness and arts tax credits are being eliminated next year.

Also, the education and text book tax credits are gone next year.

Instead, they will target funding for lower income students.

Lambie says the income splitting tax credit is being eliminated this year. That is for parents with at least 1 child.

The opposition parties, meantime, are denouncing the Trudeau’s government’s spend-heavy first budget, which calls for a deficit of almost 30-billion dollars in the fiscal year starting April 1st.

That’s three times what the Liberals promised in the campaign for last fall’s election.

Interim Conservative Leader Rona Ambrose calls it a “nightmare scenario” for taxpayers, whom she says will be “on the hook for out-of-control Liberal spending” that will lead to more waste and mismanagement.

N-D-P Leader Tom Mulcair says the spending plans don’t go far enough to help families who are worried about their jobs and struggling to make ends meet.

(With files from The Canadian Press)

Some of the highlights of the federal budget tabled Tuesday by Liberal Finance Minister Bill Morneau:

– A deficit of $29.4 billion in 2016-17, nearly three times the $10 billion promised during the fall election campaign, and a projected deficit of $17.7 billion in 2019-20 rather than the balanced budget that was promised in October.

– $10 billion more over two years for a new Canada child benefit, absorbing and replacing both the Canada child tax benefit and the universal child care benefit. Targeted to low and middle-income families, the government says the new benefit provides an average increase of nearly $2,300 in 2016-17.

– $2.5 billion over two years on a suite of changes to employment insurance, including reducing the required work experience for new entrants and re-entrants; halving the two-week waiting period; extending a pilot project to allow claimants to work while collecting benefits; simplifying job-search requirements; and extending the benefit eligibility window in specific regions with a higher unemployment rate.

– An end to income splitting for couples with children, the children’s fitness tax credit and the children’s arts tax credit.

– A promised cut to the 10.5 per cent small business tax rate has been deferred indefinitely.

–  $2.6 billion over five years for primary and secondary education on First Nations reserves, including language and cultural programs, plus $969.4 million over five years for education infrastructure.

– $1.2 billion over five years for social infrastructure for Aboriginal Peoples, including First Nations, Inuit and northern communities.

– $10.4 million over three years for new women’s shelters in First Nations communities, and $33.6 million over five years and $8.3 million ongoing for support services.

– $5.6 billion more in benefits to veterans and their families over five years, including a disability award that increases to $360,000, retroactive to 2006, and an earnings loss benefit to injured vets of 90 per cent of pre-release salary. The government is also re-opening nine veterans’ service offices across the country and adding a 10th.

– Planned National Defence purchases worth $3.7 billion (ships, planes and vehicles) are being deferred indefinitely.

– $1.53 billion over five years to increase Canada student grants to $3,000 from $2,000 for low-income students, to $1,200 from $800 for middle-income students and to $1,800 from $1,200 for part-time students.

– $3.4 billion over five years to increase the guaranteed income supplement top-up benefit by up to $947 annually for single seniors, and restore the old age security eligibility age to 65 from 67.

– $2.2 billion over five years in water and wastewater treatment and waste management as part of a 10-year green infrastructure investment plan.

– $1.9 billion over five years to support Canadian arts and culture organizations and cultural infrastructure, including the CBC and national museums.

– $2 billion over three years for a new strategic investment fund for infrastructure improvements at colleges and universities, in partnership with provinces and territories.

– $2 billion over two years for a low-carbon economy fund, beginning in 2017-18;

– More than $1 billion over four years to support future clean technology investments, including in forestry, fisheries, mining, energy and agriculture, plus $130 million over five years to support clean technology research and development.

– $345.3 million over five years to Environment and Climate Change Canada, Health Canada and the National Research Council to take action to address air pollution.

– $40 million over two years for the inquiry into missing and murdered aboriginal women and girls.

– Up to $178 million over two years for the provinces for urgent affordable housing needs.

– $38.5 million over two years to strengthen and modernize Canada’s food safety system.

– $142.3 million over five years to add new national parks and improve access during the 150th anniversary of Confederation.

(The Canadian Press)