(iStockphoto) The federal government has done what it said it would do: deliver a "stay the course" budget that relies on a growing economy and a keen eye on the bottom line to wipe out the deficit by 2014-15.

There is little in the way of new spending, except for fulfilling commitments already made.

There's no extension of the popular home renovation tax credit and no money for renewable energy, outside of a modest amount limited to the forestry sector. There's a little more money for elite athletes, students and a High Arctic research station.

Looking for a tax cut? Not in this document. Nor are there tax increases. And if you were hoping to claim a medical expense for your cosmetic surgery, you've missed the boat. Procedures like liposuction, teeth whitening and botulinum toxin, or Botox, injections are no longer covered. However, medically necessary cosmetic procedures will still qualify for a tax break.

Here's a look at some of the highlights of Budget 2010.

The deficit

Finance Minister Jim Flaherty says a combination of government spending restraint and economic growth will erase the deficit - now pegged at $53.8 billion for the fiscal year ending in March. The government expects the deficit to decline to $49.2 billion in 2010-11, $27.6 billion in 2011-12, $17.5 billion in 2012-13, $8.5 billion in 2013-14 and $1.8 billion by March 31, 2015.

The government says it won't touch transfers to individuals or to provinces in its quest for a balanced budget. Instead, it will reduce the growth of government spending and rely on an improving economy to continue creating jobs.

Spending by government departments will be frozen. That means wage increases for civil servants — set at 1.5 per cent this year — will have to be paid for through existing budgets. Through targeted spending restrictions, the budget projects that the government can save $17.6 billion over five years.

The government concedes that if interest rates rise faster than expected, deficit projections will be off. The budget says for every 100 basis points — or one percentage point — that the government is off, the deficit will be $3 billion higher after five years.

And if the economy runs into a rough patch again, the deficit projection will be overly optimistic. The government estimates an unexpected one percentage point drop in gross domestic product would knock $4.4 billion off budgetary projections.

How does it affect me?

This year’s budget has very little impact for most people. But if you contribute to a registered disability savings plan, you'll be able to carry forward the Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) entitlements for 10 years. The government provides the grants and bonds every year you contribute to the plan, which parents and others can use to help pay the cost of providing long-term care for severely disabled children.

While there are no new tax reductions, the government says taxes for lower income people will fall this year because of measures introduced in previous budgets. You can earn a little more money before you start paying federal income tax thanks to a minor increase of $62 to the basic personal exemption, which will rise from $10,320 to $10,382. The government says Canadians will be paying $3.2 billion less in income taxes this year because of the cuts outlined in the past two years.

The budget also changes the rules for parents who share custody of a child, when it comes to the child tax benefit and the universal child care benefit. Under current rules, only one parent can receive the benefits each month. Under new rules, both parents can share the benefit if the child lives more or less equally with two parents who live apart.

There's a change to the tax treatment of the universal child care benefit - that $100 monthly payment for children under the age of six. The payment is currently taxed as income in the hands of the spouse with the lowest income in a two-parent family. That means a single parent may end up paying more tax than a single-income couple even if their respective incomes are the same. Under rules coming into effect this year, a single parent will have the option of including the aggregate universal child care benefit amount received in their income or in the income of the dependant for whom an eligible dependant credit is claimed. The measure will provide $168 in tax relief for single parents with one child under six in 2010, the budget document says.

What about jobs?

There is no new spending on jobs in the budget — except for the $19 billion in stimulus spending announced in last year's budget as part of the government's two-year Economic Action Plan — the vast majority of which has already been committed.

The budget will temporarily extend the maximum length of work-sharing agreements to 78 weeks from 52. The program was introduced in the last budget, offering employment insurance benefits to workers willing to work reduced hours while their employer recovered from economic difficulties.

The budget estimates that more than 160,000 people are taking part in 6,000 work-sharing agreements.

What's in it for consumers?

The government is proposing measures affecting federally regulated financial institutions. They include:

• Prohibiting negative-option billing in the financial sector. A financial institution won't be able to bill you for products or services unless you've agreed to them.
• Standardizing the calculation and disclosure of mortgage pre-payment penalties.
• Reducing from seven days to four, the maximum time a financial institution can hold funds from a cheque you deposit to your account. As well, the institution would have to allow you to access up to $100 from that cheque within 24 hours.

Plugging loopholes

If you use the Canada Revenue Agency as a high-interest savings account by deliberately overpaying your taxes, your return is about to fall. The CRA has been paying an interest rate equal to the average yield of three-month Government of Canada Treasury Bills sold in the first month of the preceding quarter, rounded up to the nearest percentage point, plus two percentage points.

The budget proposes that – as of July 1, 2010 - the interest to corporations will be set at the average yield of three-month Government of Canada Treasury Bills sold in the first month of the preceding quarter, rounded up to the nearest percentage point.

The government is also looking to introduce rules to counter schemes known as "foreign tax credit generators" that are designed to shelter tax otherwise payable by artificially increasing foreign tax credits.