Budget 2009: our Economic Action Plan for Canada

On January 26th, our government released Budget 2009, which details our Economic Action Plan for Canada. We are living through an extraordinary downturn in the global economy. These extraordinary times call for extraordinary measures. That is why we created a plan that stimulates the economy, protects Canadians hit hardest and secures our long-term prosperity.

These times are unprecedented. A global recession that began in the United States with a crisis in their financial institutions has spread. It is more serious than anything we have experienced in generations. Thankfully, we are weathering the storm best than most other economies.

Around the world we have seen banks fail and stock markets decline dramatically. In less than four months since the last election, the global economy has weakened beyond what anyone predicted.

Our Economic Action Plan responds to this reality by providing significant stimulus to the economy, protects those most vulnerable and increases the availability of financing in Canada.

The Economic Action Plan includes initiatives to stimulate the economy:

• A plan to reduce income taxes and freeze payroll taxes to boost income;
• A plan to create a new renovation tax credit to help homeowners with home improvement and stimulate construction;
• A plan to construct roads, bridges, buildings and public transit to boost the economy, create jobs and secure our long-term prosperity;
• A plan to expand post-secondary education funding to prepare for the jobs of the future.

The Action Plan includes initiatives to protect the economy:

• A plan to increase Employment Insurance benefits for the unemployed
• A plan to increase funding for skills training for the unemployed.

The Action Plan includes initiatives to increase the availability of financing:

• A plan to make up to $200 billion in financing available to credit worthy borrowers to help Canadians and businesses get the financing they need, including car loans and mortgages. This will help small and medium sized businesses, so they can grow, create and maintain jobs.

Our government recognizes that unique challenges face southern Ontario. This is why we are assisting our region with:

• $1 billion over five years for a new Southern Ontario Development Agency (SODA) to help workers, communities and business in the region;
• $50 million for the Institute for Quantum Computing in Waterloo for the construction of a new world-class research facility;
• $407 million for VIA Rail Canada to improve the Quebec City-Windsor corridor; and,
• A share of $2 billion to maintain and repair buildings at colleges and universities

As a result of these extraordinary measures, the government is projecting deficits of $64 billion over the next two years. In spite of these significant deficits, we will emerge out of this recession in very good shape, especially when compared to other G7 economies, as the chart below shows.

If you wish to find out more about our Economic Action Plan for Canada, please contact me at chongm@parl.gc.ca or at (866) 878 5556.

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