The Federal Government officially tabled its 2014 budget in Ottawa Feb. 11, with Finance Minister Jim Flaherty announcing new spending would be kept at a minimum this year as the country works to balance its books for the first time since the global economic crisis hit in 2007.
The $300 billion budget, named the Economic Action Plan 2014, will aim to shrink Canada's deficit from $18.7 billion last year to $2.9 billion this time around. In delivering his 10th budget, Flaherty committed to investing in skills training programs, infrastructure projects and a handful of other service-related programs this year, while also promising there would be a “significant” surplus for next year's budget.
Speaking to the Nouvelle last week, Brian Storseth, MP for the Westlock – St. Paul riding, said he was delighted with what he feels is a “very good budget” that focuses on what is best for Canadians.
“I think this was a very good budget introduced by Mr. Flaherty. It focuses on a number of important things for our area, while also working towards getting the Government of Canada out of deficit, which is of the utmost importance,” Storseth explained. “When we went into deficit in the midst of the global economic downturn, we made a commitment to invest in our country to ensure our economy stays strong and I think now we're coming out of that downturn in a better position than we were in going into it.”
Liberal leader Justin Trudeau led criticism of the budget, saying it gave the country “no plan” for economic growth.
“What this government has given us is no plan for economic growth,” Trudeau said, following the release of the budget. “My concern is that in order to grow an economy we need infrastructure spending, we need smart spending on education and training, we need smart spending to enhance trade relationships and research innovation. What we're not seeing is any vision or comprehensive plan.”
Elizabeth May, leader of the Green Party posted on social media that “Harper's Olympic budget falls well short of the podium,” while the Public Service Alliance of Canada's British Columbia office stated, “(The) Conservatives once again fail to promote a positive vision for Canada or meaningfully invest in the future.”
The Canadian Federation of Students said in a press release that the budget does little to make post-secondary education affordable or alleviate the $15 billion of student debt carried by Canadian families.
“Continuing to download the cost of post-secondary education onto students is a short-sighted policy that will harm Canada's economy,” said Jessica McCormick, National Chairperson of the Canadian Federation of Students. “The 2014 budget proposes no solutions to the looming student debt crisis and pays lip service to high youth unemployment.”
Included in this year's budget is the New Canada Job Grant, which, should it go ahead, could see nearly 130,000 Canadians each year gain access to the training they need to fill available jobs in their area. The program has been met with criticism from politicians in several provinces and territories, who claim the April 1 deadline outlined in the budget is unrealistic.
Provinces have asked the federal government for an additional six months to get the program up and running as some have claimed more time is needed to cut existing programs that would become obsolete upon the implementation of the New Canada Job Grant.
In terms of spending, the federal government has announced it will allocate $500 million over two years to an Automotive Innovation Fund for research and development, while also committing $1.5 billion over 10 years for a Canada First Research Excellence Fund to finance research at post-secondary institutions.
There is also $392 million over five years set aside for highways, bridges and dams in National Parks, while an investment of $305 million over five years will be made to expand rural high-speed internet throughout the country. A further $10 million will be spent over two years for the development of several snowmobile and recreational trails across Canada.
The government has also set aside $3 billion as an emergency fund in case it has to deal with any disasters over the next 12 months. Should that fund remain untouched, it appears likely Flaherty will be able to announce a balanced budget later this year.
Taxes on cigarettes will rise by $4 a carton and retired public sector workers will pay twice as much for voluntary medical benefits in the coming years. The feds have also delayed more than $3 billion in defense spending for the coming year.
For this region, Storseth said he was excited to hear about the new interest-free loans the federal government will be making available for apprentices registered in Red Seal programs, while also commending Flaherty for putting money into a Livestock Insurance Program for western Canadian farmers.
“I think there are several important things that came out of this budget for our area. The interest free loans for those people in apprenticeships will be well received in the Bonnyville region, while I also think the investment made to the Livestock Insurance Program is very important to farmers in the Lakeland,” Storseth said.
He added, “On top of that, we have committed to changing the plant breeders bill of rights so that farmers will be able to re-use their own seeds. There is also an increase into a veterans funeral and benefits program - $108 million to ensure veterans that fought for our country are buried with the dignity they deserve.”
Storseth announced there would also be changes made to the Civil Service Employment Act to ensure priority hiring for men and women that have served with the Canadian Forces.
One of the main issues in the Lakeland in recent years has been that of affordable housing, and Storseth said the federal government was taking “huge” steps in this year's budget to help address housing issues across the country.
“One of the things affecting Bonnyville, Cold Lake and St. Paul for what seems like a lifetime has been that of affordable housing,” Storseth said. “I'm continuing to hear that we need to invest money into the area and this year (the federal government is) committing $1.25 billion into an affordable housing strategy that we'll be partnering up with provinces on and taking very seriously. I'll absolutely be fighting hard to ensure we see some of that money flowing into this region. ”
In total, the province of Alberta is expecting to see $5.2 billion in transfer payments from the federal government this year, an increase of $1.1 billion from last year. Storseth said the increase could be attributed to a change in the system whereby the federal government now calculates payments – split among Canada health transfers, Canada social transfers and equalization payments – on a per capita basis.
For more information on the 2014 federal budget visit www.budget.gc.ca/2014/home-accueil-eng.html
