Federal Budget 2007: Implications for Atlantic Canada
March 19, 2007
The new Conservative government’s second budget, tabled today by Finance Minister Jim Flaherty, places the focus firmly on new spending initiatives and increased transfers, in stark contrast to the tax cuts which dominated last year’s federal budget. The largest spending areas in this budget are for fiscal transfers to the provinces, education and the labour market, infrastructure and the environment.
There is no broad based tax relief for either individuals or businesses. Personal income tax cuts are focused on a new child tax credit, increases in amounts to support single parents or single earner couples and the previously announced increases in the age credit and pension income splitting.
This Commentary highlights budget measures that are particularly relevant in Atlantic Canada.