CANADA: Finance Minister Jim Flaherty introduces Budget 2013, on track to balance budget by 2015!

Finance Minister Jim Flaherty (Photo courtesy of Reuters)

The pieces may have shifted, but the Conservative Party staples of small government, low taxes, economic growth and job creation have stayed intact in this year’s federal budget, dubbed Economic Action Plan 2013 (EAP 2013).

The document, tabled in the House of Commons on Thursday by Finance Minister Jim Flaherty, is one that pledges to stimulate the economy in the midst of massive deficits in the United States and recession in Europe while limiting growth in domestic spending.

[ Full Coverage: Canada's Federal Budget 2013 ]

Flaherty said that while Canada remains in an enviable position compared to other countries, we still face challenges specifically with regard to household debt and skilled labour shortages.
"This plan takes action in three important areas," he told Parliament.
"It introduces the Canada Job Grant. A bold new initiative to transform the way we provide skills training to ensure we connect Canadians with available jobs. It introduces a new Building Canada plan, the largest and longest federal investment in building roads, bridges and public transit in Canadian history.
"And it introduces a plan to assist our manufacturers and other businesses as they innovate to compete in the global economy."

Here are some of the highlights of the budget:

- Skills training
The budget introduces the Canada Job Grant worth $500-million-per which will "directly connect skills training with employers."
The government will also invest $70 million — over three years — to support 5,000 more paid internships for recent post-secondary graduates.
Currently, the federal government transfers over $2 billion a year to provinces to fund "regionally-distinct skills training programs." New Brunswick for example offers programs to develop of skills of electricians.
According to reports however, the government, buoyed by complaints from industry, hasn't been happy with the results.

- Infrastructure spending
Economic Action Plan 2013 allocates $53 billion, over seven years, to Canada's cities and municipalities for for infrastructure expenditures.
This money is actually an extension of the 2007 Building Canada infrastructure program which expires this Spring.
According to the Globe and Mail, cities had requested a 20-year package worth about $6.6-billion annually to help eliminate a supposedly $200 billion infrastructure deficit.

- Money for the manufacturing sector
The government is pledging more money to the manufacturing sector in the form of $1.4 billion in tax relief, a $225 million hiring credit for small businesses, and $920 million over five years "to renew the Federal Economic Development Agency for Southern Ontario."

- Funding renewed for Homelessness
The government will 'invest' $119 million a year into a new national homeless strategy.
According to the Canadian Press, funding for the Homelessness Partnering Strategy was already at $134.8 million a year, but was set to expire in 2014.
The renewal of funds, however, comes with a new direction: a housing first strategy which, like its name suggests, focuses on housing the homeless first and then dealing with their social and mental illnesses.

- Cheaper hockey equipment
The government has decided to cut peculiarly high tariffs on imported hockey gear.
The cuts should mean cheaper prices for consumers for things like hockey pads, gloves and skates — the majority of which are now manufactured outside of Canada.

- CIDA and Department of Foreign Affairs to merge
The government has decided merge the Canadian International Development Agency (CIDA) and the Foreign Affairs Department. CIDA, of course, is Canada's lead agency for development assistance around the world.

In order to maximize this opportunity, the Government will amalgamate the Department of Foreign Affairs and International Trade (DFAIT) and CIDA.
In addition to maintaining a separate ministerial position, this Government will, for the first time, enshrine in law the important roles and responsibilities of the Minister for development and humanitarian assistance. This enhanced
alignment of our foreign, development, trade and commercial policies and programs will allow the Government to have greater policy coherence on priority issues and will result in greater overall impact of our efforts.

While the merger won't directly affect Canadians, it's a signficiant change in the way Canada's exercises it's foreign development responsibilities.
The budget deficit is expected to be $25.9 billion. The government still expects to balance their books by the Fall of 2015.

(Photo courtesy of Reuters)