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 9:00 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.

 

Just Posted

Peanut Butter Campaign supports local food banks

Both Save On Foods in Fernie and Overwaitea in Sparwood participated in… Continue reading

VIDEO: Explorers uncover Canada’s deepest cave in Fernie

The cave, named Bisaro Anima, was confirmed to have broken the record on New Year’s Day

New Glade ferry enters testing phase

The Glade II will be able to carry heavier loads and will emit less greenhouse gases.

Freezing rain warning in effect for B.C. Southern Interior

Environment Canada issued the freezing rain warning for most of the Southern Interior Tuesday morning

Rumble In The Rockies brings live boxing back to Fernie

Local boxer, Dylan Mitchell takes first career win at home

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

Ministry statistics show a gap in SD5 teachers’ wages

On average, male teachers in SD#5 earn $5,675 more annually than their… Continue reading

Suspected Toronto serial killer targeting gay community arrested

A 66-year-old man is charged with first-degree murder in disappearance of two Toronto men

Carpet bowlers have been excluded from BC 55+ Games and Canada 55+ Games

Gold medal carpet bowling winners not able to defend their titles in 2018

UPDATE: Police release new footage, launch website in hunt for 13-year-old’s killer

IHIT say no one has been arrested or charged in connection with Marrisa Shen’s death

Rural B.C. students score visit with Canadiens netminder Carey Price

Two students from the Chilcotin can hardly wait to meet hometown hero Carey Price in Montreal.

VIDEO: Elk parade on Vancouver Island is awesome sight

They’re out in force for a morning stroll. Check out some of Youbou’s famous elk.

North Delta’s boy newest BC Children’s Hospital Foundation’s Champion Child

Colton takes the reins from 2107 Champion Child and Tsawwassen resident Taylin McGill

VIDEO: B.C. announces anti-racism funding for prevention, education

Ravi Kahlon said money will go to B.C. Organizing Against Racism and Hate (OARH) program

Most Read