BUDGET 2004

Read it here (HTML) or here (PDF). Watch it here (ParlVU) or here (CPAC). Discuss it here. The Globe and Mail has a budget page. So does The National Post. And here's last year's budget, for comparison.

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Goodale speech: Focused. Responsibility. Integrity. Not throwing caution to the wind. But important investments. Social foundations. Balance the books, better control spending. Come too far "to slide back into the glue of red ink." Balanced budget this year, next, and year after that. Debt burden on steady downward track. Accountability, transparency, value. Comprehensive plan for modern expenditure management and control system "aimed at preventing the abuses that have so understandably angered Canadians." We accept our responsiblity for what went wrong, and we accept our responsibility to get it right. Re-establishing Comptroller General of Canada. Professional comptrollers to sign off on all new spending initiatives. Bolstered internal audits, government-wide. Authority to go into every corner of government, no matter how small or seemingly special. Real-time tracking mechanisms. Public disclosure of contracts. No corporate governance rules for Crown corporations. Five-year special audits tabled with Parliament and posted on websites. Reshaping budget priorities. So far: Cancelled political history museum, terminated sponsorship program, reduced advertising, cancelled Via's expansion. Going forward: Expenditure Review Committee asking tough questions. KEY LINE: "It is not about cutting. It's all about finding the money to do something new." To identify $3-billion in savings over four years for reinvestment. 2003 a tough year. But we're in good shape. Shouts: $1-billion for bull farmers! (Your joke here) Shows value of contingency reserve: but he spent some of it. $1.9-billion this year. Back to $3-billion next years. Goes to debt reduction if unused. Another $1-billion and up for prudence. If unused, goes to spending ("to fund the priorities of Canadians"). Paid down $52-billion of debt to date: interest savings of $3-billion a year ("money that is now being invested in priority areas"). Debt-to-GDP ratio now at 42%, down from 68%. Goal is 25% within 10 years, to make ready for the demographic bulge to come. CPP is actuarially sound for next 50 years. Forecast growth for 2004: 2.7% (real). Not great. Seventh consecutive balanced budget, nevertheless. Best in world. Number one priority is health care. Ergo, $2-billion more to provinces, already announced (though they can spend it as they wish). Governments to work together! (slams table) $1-billion for public health initiatives. New measures for education savings: A learning bond $500 for families earnings less than $35K. Doubled gov'ts contribution to RESPs. New grants for 20,000 low-income students. Loosened Canada Student Loans rules. More for research. Canada Foundation for Innovation, Genome Canada, Millennium Scholarships, etc. $270 million in venture capital for "promising new companies." How promising can they be if nobody else will finance them, ie people investing their own money? Small business lower tax rate applies to all income up to $300,000 next year. Renewable fuels, hybrid vehicles, zzzzzzzzzz.... "Canadians do not live in markets, nor do they raise their children in economies." It's a New Deal for communities, ie shoveling gobs of money to city politicians. "A transformative new partnership involving all levels of government." ie We're not going to tread on the provinces' toes. $7-billion GST rebate (10 years). "The social economy is too often overlooked." ie More money for client groups. A New Horizons program for Canadian seniors. (Bravo! somebody shouts.) Community Futures organizations. Urban Aboriginals Strategy. Cleanup of polluted sites: $4-billion over 10 years. Sydney tarponds a priority. $1-billion for roads, sewers, transit (hello, Toronto). $600 million for improved security. $250 million for defence. etc etc etc.