Federal Finance Minister Bill Morneau delivers budget speech in the House of Commons Tuesday.

Federal Finance Minister Bill Morneau delivers budget speech in the House of Commons Tuesday.

Opposition blasts Liberal borrowing, spending

Borrowing to cover tax cuts, extra EI spending and more grants for transit and other infrastructure

  • Mar. 22, 2016 8:00 a.m.

Federal Finance Minister Bill Morneau has handed down his first budget with a massive deficit of $29.4 billion – three times what had been promised during the election campaign – as the new Liberal government embarks on a stimulus program.

The budget forecasts more than $100 billion in deficits for the next five years, contrary to Prime Minister Justin Trudeau’s election promise to balance the budget in four years. Morneau billed the budget as a plan to “revitalize the Canadian economy” and deliver a tax break to nine million taxpayers, and a more generous, tax-free child benefit.

Conservative leader Rona Ambrose said the finance ministry reported on budget day that the Liberals inherited a $4 billion surplus.

“There was still a surplus in January, and they’ve blown through that in the first 100 days,” Ambrose said. “What we’re seeing now is reckless spending without a job creation plan, and no actual plan in the budget to return to a balance.”

NDP leader Thomas Mulcair took aim at Morneau’s plan to target additional Employment Insurance coverage to areas of the country hit hard by the slump in oil and commodity prices.

“Right now there are 850,000 people who have lost their jobs who are not even eligible for EI,” Mulcair said. “The budget only takes care of 50,000 of them.”

Metro Vancouver mayors hoping for big infrastructure grants for rapid transit expansion may be disappointed that much of the future stimulus money will be back-end loaded in a second phase of grants after the next federal election.

A $370-million initial investment for Metro Vancouver transit is included and will assist TransLink in improving bus service and SkyTrain across the region.

The budget also indicates Ottawa can contribute up to 50 per cent of future capital funding, instead of the one-third from each senior government that was the practice in the past.

Big ticket items in the budget include the reduction of middle class tax rates – from 22 to 20.5 per cent for the $45,000 to $90,000 income bracket. Only part of that is offset by an increase in the tax rate for income over $200,000 from 29 to 33 per cent.

The budget also includes $8.4 billion for aboriginal communities.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Construction in Oak Bay is nearly all focused on rebuilding new single-family homes and without secondary suites. (Black Press Media File Photo)
Oak Bay nears regulation of secondary suites

Preliminary report hints there’s no preferred option

Sidney Pier was one of two sites in Sidney as the Netflix series Maid shot in Sidney in late 2020. The show starring Margaret Qualley was one of 38 productions shooting in Greater Victoria. (Bob Orchard/Submitted)
Head of Greater Victoria film commission warns of lost economic opportunity

Kathleen Gilbert said without full funding, region will not be able to attract productions

A senior official with Victoria International Airport says the airport is still researching COVID-19 testing regimes but predicts testing and screening will remain part of the aviation industry even after vaccines have rolled out. (Black Press Media file photo)
Victoria International Airport researching COVID-19 testing options

Senior official predicts ‘screening and testing will be around long after the vaccination rollout’

Sidney Jon Blair said he would have died if a van and car had collided at the intersection of corner of Resthaven Drive and Brethour Avenue in early December. (Wolf Depner/News Staff)
Sidney senior urges motorists to slow down on Resthaven Drive

Jon Blair said community must become more pedestrian-friendly

Tarpaulin-covered tents sit next to one of the ponds in Beacon Hill Park. The location of the Meegan community care tent has still not been nailed down, as Victoria council rejected the recommendation offered by city staff. (Don Descoteau/News Staff)
Location of care tent for Victoria’s Beacon Hill campers still not settled

Council roundly rejects Avalon Road site, road’s edge on Cook Street appears the top alternative

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Williams Lake physician Dr. Ivan Scrooby and medical graduate student Vionarica Gusti hold up the COSMIC Bubble Helmet. Both are part of the non-profit organization COSMIC Medical which has come together to develop devices for treating patients with COVID-19. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Group of B.C. doctors, engineers developing ‘bubble helmet’ for COVID-19 patients

The helmet could support several patients at once, says the group

A 17-year-old snowmobiler used his backcountry survival sense in preparation to spend the night on the mountain near 100 Mile House Saturday, Jan. 16, 2021 after getting lost. (South Cariboo Search and Rescue Facebook photo)
Teen praised for backcountry survival skills after getting lost in B.C.’s Cariboo mountains

“This young man did everything right after things went wrong.”

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Tourists take photographs outside the British Columbia Legislature in Victoria, B.C., on Friday August 26, 2011. A coalition of British Columbia tourism industry groups is urging the provincial government to not pursue plans to ban domestic travel to fight the spread of COVID-19. THE CANADIAN PRESS/Darryl Dyck
B.C. travel ban will harm struggling tourism sector, says industry coalition

B.C. government would have to show evidence a travel ban is necessary

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

Everett Bumstead (centre) and his crew share a picture from a tree planting location in Sayward on Vancouver Island from when they were filming for ‘One Million Trees’ last year. Photo courtesy, Everett Bumstead.
The tree-planting life on Vancouver Island featured in new documentary

Everett Bumstead brings forth the technicalities, psychology and politics of the tree planting industry in his movie

Most Read