5 items to watch for in the federal budget
Finance Minister Jim Flaherty bringing down his 8th federal budget today
By Laura Payton, CBC News
Posted: Mar 21, 2013 4:15 AM CT
Last Updated: Mar 21, 2013 6:39 PM CT
Federal Finance Minister Jim Flaherty has hinted at some of what will be in Thursday's budget.
(Adrian Wyld/Canadian Press)
Related
Related Stories
- A snapshot of Canada's federal and provincial fiscal health
- PQ accused of sabotaging transfer payment talks
- Budget watchdog's swansong is a day in court
- Peeved Harper aims at 'remaking Canadian labour force'
- Chief of defence staff prepared for deeper military cuts
- Offshore tax dodgers coming under greater pressure
Last year's budget brought $5.2 billion in cuts to federal government spending, trimming the civil service and projecting future cuts to Old Age Security. With the 2012 budget outlining cuts for the following three years, the 2013 budget isn't expected to hold many additional trims.
But most budgets do feature something that grabs headlines, even in advance. This morning, CBC News has confirmed tariffs on imported hockey equipment will be dropped. It's one of few expected goodies in an otherwise austere budget.
Here are some other things to expect from Finance Minister Jim Flaherty:1. Skills development and retraining money
Last year's budget announced changes to Employment Insurance that came into effect in January, making it harder to turn down work and still receive EI. This year's budget may have more measures to push workers to fill open jobs, particularly those in the skilled trades. As CBC News reported earlier this week, Prime Minister Stephen Harper is worried about those open jobs. Flaherty echoed that sentiment in a letter to caucus.
"There are too many jobs that go unfilled in Canada because employers can't find workers with the right skills," he said in a letter to the Conservative caucus.
"Training in Canada is not sufficiently aligned to the skills employers need."
Expect to see measures in the budget to promote apprenticeships, break down provincial licensing barriers that prevent skilled workers from moving across the country and train or retrain aboriginal workers, older workers, recent immigrants and people with disabilities. This measure may also include taking back some of the $2 billion a year transferred to the provinces now under labour market development agreements, or the federal government could renegotiate those agreements to direct more of the money to include private sector training partners.
There's also a separate category of labour market agreements with the provinces, worth about $500 million a year, that are designed to retrain people who aren't eligible for EI. The government could use this program to turn people toward skilled trades work by using incentives like retraining and personal tax breaks. It could also be a way to target young Canadians with no labour market experience. The national unemployment rate was 7.0 per cent last month, but unemployment for Canadians aged 15 to 24 was nearly twice that, at 13.6 per cent.
Flaherty also noted that, in terms of manufacturing, "There is more we can and will do to support this important sector of the Canadian economy."
2. Money for cities
Last November, Canada's big city mayors hit Ottawa and called for billions of dollars and a 20-year plan to fix the country's crumbling roads and sewer systems. The current Building Canada infrastructure program set up by the Conservatives in 2007 is set to end in spring 2014, leaving room for the federal government to offer a new deal to the cities, which say that for every dollar of taxes Canadians pay, municipalities get only eight cents.
The mayors called for $5.75 billion a year, a $2.5 billion increase over the current funding. They pledged to match that amount, along with the provinces, and said $1 billion of that should be dedicated to fighting gridlock. The Federation of Canadian Municipalities says gridlock costs the economy $10 billion a year in lost productivity.
In the letter to caucus, Flaherty said the government "will do more" to build on investments it's already made in infrastructure.
3. First Nations education cash
Funding for on-reserve education is one of the key issues for Assembly of First Nations National Chief Shawn Atleo, who has repeatedly called for increases. Money for First Nations education has been capped at two per cent per year since 1996, an amount Atleo says hasn't kept pace with population growth and is nowhere near the provincial funding provided for off-reserve schools.
The government promised $275 million for early literacy programs and on-reserve school renovations in the last budget. Some of that money has already been delivered. The Conservatives have also started consultations on a First Nation Education Act, aiming to have a bill ready to go in 2014, although Atleo said in October that he was instructed by the chiefs to reject it. It's possible after a difficult year for the government's relations with First Nations people there could be something in the budget to ease that relationship.
4. Small cuts
Since last year's budget announced cuts over three years, it's not likely Canadians will see large cuts included in this year's budget. But with the government trying to eliminate the deficit by 2015, it's possible Flaherty will find new places to scale back federal programs.
5. Closing tax loopholes
The government has been looking at closing tax loopholes as one method to to address falling revenues and dealt with a handful of obscure loopholes in previous budgets. It may also look at measures to deal with offshore tax dodgers, something Liberal Senator Percy Downe says the Canada Revenue Agency is doing little to address.
With files from Greg Weston and James Fitz-MorrisShare Tools
Latest Manitoba News Headlines
- Second man charged in death of Winnipeg model
- Winnipeg police have charged a second man in connection with the death of a young model who was shot to death in March of last year. more »
- One person killed in head-on crash near Brandon
- One person has died after a head-on crash involving a pickup truck and a semi carrying fertilizer, just north of Brandon, Man. Friday night. more »
- Steinbach RCMP find marijuana grow-op, 65 plants seized
- A Friday morning assault has led police officers in Steinbach, Man. to a marijuana grow op and the seizure of about 65 plants. more »
- Elijah Harper, key player in Meech Lake accord, dies at 64
- Elijah Harper, a former Manitoba MLA and MP who was a key player in defeating the Meech Lake accord, has died at age 64. more »
Must Watch
Top News Headlines
- Senator Pamela Wallin leaves Conservative caucus
- Senator Pamela Wallin says she is recusing herself from the Conservative caucus while her travel expense claims are under scrutiny. Wallin's departure comes one day after Senator Mike Duffy left the Tory caucus amid controversy over his expense claims. more »
- Toronto Mayor Rob Ford cancels weekly radio show
- Toronto Mayor Rob Ford will not be hosting his weekly radio show this weekend after explosive allegations that he was recorded on video appearing to smoke crack cocaine. more »
- WHO concerned coronavirus spreading person to person
- The World Health Organization has issued a blunt assessment of the coronavirus outbreak in Saudi Arabia, acknowledging for the first time that there are concerns the virus may be spreading from person to person, at least in a limited way. more »
- Rescue attempt over for missing fishermen in New Brunswick
- The rescue attempt for two missing fishermen has been called off in New Brunswick, hours after one body was found. more »
- Elijah Harper, key player in Meech Lake accord, dies at 64
- Two bodies found in Charleswood home
- 6 tips for Manitoba gardeners this long weekend
- Athletics Manitoba director dies in highway crash
- One person killed in head-on crash near Brandon
- Winnipeg golf course privatization plan OK'd by committee
- Vince Li gets Winnipeg visitation privileges
- Winnipeg police charge 2 women in Johnny G’s killing
- UFO sightings soar in Manitoba, across Canada

