Politics

Federal budget 2016: Highlights of Bill Morneau's first budget

Big deficits to fund spending on families, infrastructure and Indigenous peoples

The Liberal government's first budget 1:34

 shares

 

Finance Minister Bill Morneau has tabled a budget that forecasts big deficits over the next five years and beyond to finance a new tax-free monthly child benefit, more money for First Nations, infrastructure spending and extended employment insurance benefits to hard-hit regions.

Here are some highlights of Bill Morneau's first budget:

  • Deficit: $29.4 billion this year, $29 billion the next before falling - but no surplus forecast before the next election.
  • Debt: Expected to grow by $113 billion by 2020-21, but debt-to-GDP ratio to stay mostly flat at around 32 per cent.
  • Growth: Deficit based on 0.4% annual growth - much lower than economists predict.
  • Canada Child Benefit: New monthly tax-free payments starts July 1 to replace UCCB and other tax measures: up to $6,400 a year per child under 6, and $5,400 those aged 6 to 18. But this amount begins to claw back for households with an income over $30,000 and is eliminated entirely for incomes over $190,000.
  • Tax credits: Children's arts and fitness tax credits phased out by end of 2017. But teachers get a $150 credit for teaching materials.
  • EI: Changes make it easier to qualify for benefits, and extends benefits for workers in 12 hard-hit regions. Plus: a bigger-than-expected cut in EI premiums next January.
  • Infrastructure: $120 billion over 10 years, focusing first on public transit, water, waste management and housing infrastructure.
  • Indigenous Peoples: $8.4 billion over five years, with $2.6 billion of that to improve primary and secondary education on reserves. Other funding for drinking water and housing, as well as family and child services.
  • Student grants: Increased 50%, to $3,000 for low-income and $1,200 for middle-income students.
  • Arts: $1.9 billion over five years for arts and culture organizations, including the Canada Council, Telefilm Canada and the National Arts Centre. $675 million to "modernize and revitalize CBC/Radio-Canada in the digital era."
  • Seniors: Guaranteed Income Supplement increased by up to $947 annually.
  • Veterans: Reopens nine service offices, increases amounts payable to injured veterans and indexes some benefits to inflation.

What does Budget 2016 mean for you? 1:14

CBC is not responsible for 3rd party content

More On This Story

Starting soon: To encourage thoughtful and respectful conversations, for all new accounts, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted for existing community members in June.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Submission Policy

Note: The CBC does not necessarily endorse any of the views posted. By submitting your comments, you acknowledge that CBC has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that comments are moderated and published according to our submission guidelines.