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Budget 97
Budget 97 Budget 97 Finance Minister Paul Martin unveiled the Liberal government's 1997 budget recently. As most economic and political experts predicted there were very few surprises, if any. This was a cautious and predicable budget that was every bit political as it was economical. With the Liberal government set to call an election in late May or early June the Party was very reluctant to rock the boat further. This is what they have done in the 1997 budget and the subsequent reactions to the new budget from both the business and political communities. In this no-surprises, pre-election budget, Martin said deficit cutting is coming to an end and that Canadians, particularly the unemployed, will soon reap the rewards of 40 months of strict financial management. With the Federal deficit dropping over the last few years, the Liberals feel that they can balance the budget in the next two years. This is important because it will allow the government to halt their foreign borrowing to finance the deficit. This greatly helps the credibility of Canada and puts the country's destiny back into domestic palms. With this said, Martin announced no new tax increases, although the raise in the Pension Plan could be considered a hidden tax increase. Martin announced no new spending cuts in this budget although cuts made in previous budgets are set to slash 3 billion more dollars this year. There was some extra spending sprinkled into various areas. For starters, a new tax benefit will be created in co-operation with the provinces, costing the Federal government $600 billion. This program is attempting to help the poor and this can be effective economically because poor people tend to spend everything they have, and they almost always spend it domestically. This program will be introduced in two the stages, the first of which will begin this July with a $195 million supplement. Instead of benefits being capped at $500 per family, the maximum working income supplement benefit will be increased to $605 for the first child, $405 for the second child and $330 for each additional child. Other expenditures will be include; tax credits for students, $300 million in new health care funding and tax credits for medical expenses of the disabled. Depending on how you look at it, Martin is either spending more or just cutting less. There have been many contrary viewpoints that economic and political leaders have thrown out and most are unsure. It appears that Martin has created a no-brainer budget that doesn't do anything to hurt but does not make Canadians feel better either. Martin... This is ONLY a preview of the article. If you would like to view the entire document, you must subscribe to Academic Library. Please register below now!
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