Part H: Post-Budget Analysis

The Federal Budget Minister of Finance Jim Flaherty delivered the federal budget on Tuesday, February 11 th at 4 p.m. in the House of Commons. The budget estimates revenues and expenditures for the next fiscal year (April 1, 2014 to March 31, 2015).

Debt, Deficit and Surplus Canada’s revenues will be $276.3 billion. Canada’s expenditures will be $279.2 billion. There will be a $2.9 billion deficit this fiscal year, with a $3 billion contingency fund (for unexpected events, like natural disasters). Next year’s surplus is projected to be $6.4 billion.

Spending Overall, there will be few increases to spending. The government will delay spending $3.1 billion on new military equipment. The government will spend $1.5 billion over 10 years to support research and innovation at post-secondary institutions.

Jobs and the Economy The Canada Job Grant will be launched to ensure job training reflects skills shortages. The Canada Apprenticeship Loan will provide interest-free loans to train Canadians through apprenticeships. The government is dedicating $40 million to support full- time internships for post-secondary graduates.

Energy and the Environment The budget allocates $28-million over two years for the National Energy Board regulatory body that reviews energy projects, like pipelines. The budget removes tariffs from mobile offshore drilling units, reducing their business costs by an estimated $13- million.

Families There will be a larger tax credit for families who adopt. The government will also work to establish more low-cost bank accounts, increase transparency on credit card fees and put a cap on wireless roaming rates. The government will invest $305 million to extend and expand internet service to rural and Northern communities.

Other Budget Items The budget will increase taxes on cigarettes. The budget allocates $500 million for the Automotive Innovation Fund for research and development. The budget allocates $390 million over five years to strengthen Canada’s food safety system. The budget confirms $1.9 billion in funding for First Nations education. The budget allocates $391.5-million over five years to Parks Canada for infrastructure improvements.

Discussion Which of the budget proposals do you agree with? Which do you disagree with? Who will be most impacted by proposals in this year’s budget? Are any major issues not addressed in this year’s budget?

The 2014 Student Budget Consultation Nearly 5,000 Canadian high school students took part in the Student Budget Consultation (SBC) between November 2013 and January Participants learned about the government’s revenues and expenditures, investigated major national political issues and shared their views on the budget through a survey.

Post-Budget Analysis and Discussion Compare the results of the Student Budget Consultation Survey with the federal budget. Which aspects of the budget do you think high school students would agree with? Which aspects of the budget do you think high school students would disagree with?