CBC In Depth
Budget 2005
INDEPTH: BUDGET 2005
Highlights
CBC News Online | Updated June 24, 2005

budget





Goodale
Finance Minister Ralph Goodale delivers another balanced budget.
[Note: On April 26, the Liberals and New Democrats reached an agreement-in-principle that the Liberal minority government will make changes to its 2005 budget in exchange for NDP support. The Liberal-NDP budget deal passed third reading June 23. The changes can be found here.]

Finance Minister Ralph Goodale delivered the Liberals' eighth straight balanced budget Wednesday, with promises to spend billions of dollars on military, national day care and cities, as well as offering some measure of tax relief.

Here are some highlights:
  • $12.8 billion over the next five years for Canada's military, the biggest increase in defence spending in two decades.

    About $3 billion will go to boosting the strength of the Canadian Forces by 5,000 troops and the reserves by 3,000 soldiers and another $3.2 billion to bolster training, improve medical care, cover supply and repair shortages, and repair infrastructure.

  • An increase in the basic personal exemption on income-from $8,012 in 2004 to $10,000 by 2009, allowing Canadians to earn more money tax-free.

  • Increases the annual contribution limit on registered retirement savings plans and registered pension plans to $22,000 by 2010, and eliminates the 30 per cent foreign content rule on RRSPs and pension plans immediately.

  • Ottawa to share gas tax revenues with municipalities – 1.5 cents per litre, or $600 million in 2005, rising to 5 cents a litre or $2 billion annually by 2009-2010.

  • $700 million in a trust fund this year and next for national child care program, with a total commitment of $5 billion over the next five years.


    Ottawa to share gas tax revenues with municipalities.
  • $170 million over five years to improve Canada's drug safety oversight.

  • A pledge to reduce the general corporate tax rate from the current 21 per cent to 20.5 per cent in 2008, 20 per cent in 2009 and 19 per cent by 2010.

  • A promise to eliminate the corporate surtax by 2008.

  • $1 billion for a Clean Fund for projects to combat climate change.





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