INDEPTH: FEDERAL BUDGET 2006
What's Missing
CBC News Online | May 2, 2006
The 2006 budget is jam-packed with measures that the Conservatives promised in the weeks leading up to the January federal election, as well as some pleasant surprises.
For example, they originally warned that they would not be able to afford to keep the personal income tax cuts the Liberals made in November 2005, in the dying days of the Paul Martin government. Some of those tax measures did make it into the first Conservative budget, in full or part.
The budget also outperformed the Conservative platform in terms of tax-exempt status for scholarship, fellowship and bursary income. All such income will be tax-free now. The platform had promised such status for only the first $10,000 of income, compared to the current $3,000 limit before taxes are deducted.
However, some elements of what the Conservatives promised or implied during the election campaign do not rate a mention in the budget:
Killing the long-gun registry: There is no reference to the controversial registry that the Conservatives have fought for over a decade. Prime Minister Stephen Harper has promised to repeal it, saying it is ineffective at fighting crime and hugely expensive, with costs ballooning to $2 billion so far.
Money for health care solutions: Likely to be one of the most expensive initiatives this government undertakes, cutting health care waiting lists was one of Harper's top five priorities. Negotiations with the provinces will be needed about how to do this. No price tag was given in the budget.
Addressing the fiscal imbalance: The budget package sets out a framework the Conservatives will use to negotiate with the provinces and territories on this contentious issue. However, no specific funds are laid aside to start sending bigger cheques.
Funds for a northern military base: The campaigning Conservative leader surprised many observers when he promised to build a new military base in the Arctic to watch for signs that other nations were encroaching on Canada's sovereignty in the North. Although the budget includes increased funding for the military, amounting to $1.1 billion this fiscal year, no specific mention was made of the new northern base.
Other prominent promises have no specific dollar figures attached, but could be included in the detailed spending estimates each department prepares after a budget gives them a bottom-line figure to allocate.
They include:
- New watchdog measures designed to cut out corruption on the part of federal politicians, political aides and bureaucrats.
- The Air India judicial inquiry.
- An extra $500 million over five years for university-based research through the national granting councils.
- Costs associated with taking the first steps toward reforming the Senate.
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