CTVNEWS

Budget Highlights: $2.3 billion in new spending

CTV.ca News Staff Published Tuesday, March 22, 2011 4:24PM EDT Last Updated Saturday, May 19, 2012 4:15AM EDT

A reporter holds a copy of the federal budget in the House of Commons on Parliament Hill in Ottawa, Tuesday March 22, 2011. (Adrian Wyld / THE CANADIAN PRESS)

Text:

OTTAWA - Here are some key points from the federal government's 2011 budget: "A Low-Tax Plan for Jobs and Growth" -- which contains $2.3 billion in new spending for 2011-12.

Finance Minister Jim Flaherty touted his fiscal plan as one that will create jobs and keep the government on track to return to balanced budgets in the "medium term."

Flaherty says the "Next Phase" of Canada's Economic Action plan will create jobs, support families and communities, invest in innovation, education and training -- all while preserving Canada's "fiscal advantage."

Here are the highlights:

Projections

Deficit in 2010-11 projected to be more than 25 per cent lower than in 2009-10.
Deficit projected to shrink by more than 25 per cent again in 2011-12.
Deficit to continue to decline to $0.3 billion in 2014-15.
Surplus of $4.2 billion projected in 2015-16.

Seniors

Enhancing Guaranteed Income Supplement (GIS).
$600 for a single senior; $840 for couples. Effective July 1, 2011.
Cost to government: $223 million in 2011-12, $307 million in 2012-13. Total $530 million.

Doctors and nurses

Family physicians in rural or remote communities are eligible for a Canada Student Loan forgiveness of up to $8,000 a year -- to a maximum of $40,000.
For nurses and nurse practitioners in rural or remote communities, it comes to $4,000 a year to a maximum of $20,000.
Total cost: $9 million, effective 2012.

Family caregivers

Tax relief for caregivers of infirm dependent relatives.
A 15 per cent non-refundable credit on an amount of $2,000, effective Jan. 1, 2012. Includes for the first time spouses, common-law partners and minor children.
Cost: $40 million in 2011-12, $160 million in 2012-13. Total $200 million.

Cleaner energy

$400 million to extend the ecoENERGY Retrofit-Homes program into 2011-12.
Grants of up to $5,000 for home and property owners to offset the cost of making their homes more energy efficient.
Cost: $400 million in 2011-12.

Arts and crafts for kids

Parents can claim the 15 per cent non-refundable credit on up to $500 per child that is spent on ongoing, supervised, "children-suitable" programs in 2011 -- and future years for a child under 16 at the start of the tax year.
Includes activities such as art, music, painting, languages, photography, and chess. The Canada Revenue Agency will make final decisions as to whether the activities, programs and expenses incurred are eligible.
Cost: $25 million in 2010-11, $100 million in 2011-12, $100 million in 2012-13. Total $225 million.

Digital Innovation

$100 million per year to the Canada Media Fund for investments in the creation of digital content across multiple platforms.
Cost: $100 million in 2011-12, $100 million in 2012-13. Total $200 million.

Cities/Communities

Volunteer Firefighters Tax Credit for those who perform at least 200 hours service.
Cost: $5 million in 2010-11, $15 million in 2011-12, $15 million in 2012-13. Total $35 million.
$150 million for construction of an all-season road between Inuvik and Tuktoyaktuk that completes the Dempster Highway.

Low- and middle-income students

Doubling in-study income exemption from $50 a week to $100 a week for full-time students.
Cost: $24 million in 2011-12, $30 million in 2012-13. Total $54 million

Agriculture

Two-year initiative to support innovation and increased commercialization in agriculture.
Cost: $25 million in 2011-12, $25 million in 2012-13. Total $50 million.