Political parties, watchdogs all agree, Budget 2011 fails
By Boundary Sentinel
There is little doubt that a Canadian federal election is in the air as all three national opposition parties condemned the 2011 / 12 budget presented today by the Conservatives. Although both the Liberal and New Democratic (NDP) parties call for more support for Canadian families, less bonuses for corporations and criticized the Conservatives for hiding major spending, watchdog organizations gave support to the Conservatives’ reduced spending and the corporate breaks to help balance budgets.
The Honourable Jim Flaherty, Minister of Finance, today tabled a budget plan that launches the Next Phase of Canada’s Economic Action Plan, a low-tax plan for jobs and growth, which keeps the Government on track to return to balanced budgets in the medium term. “Our Government will build on the success of our stimulus plan,” said Minister Flaherty. “As the private sector moves ahead as the engine of growth and job creation, our Government will foster the right conditions for long-term economic prosperity, while staying on track to return to balance in the medium term.” Building on the sustainable, low-tax environment and growth-friendly policies put in place since 2006, the Next Phase of Canada’s Economic Action Plan will focus on supporting job creation, supporting families and communities, investing in innovation, education and training, and preserving Canada’s fiscal advantage. The deficit in 2010–11 is projected to be more than 25 per cent lower than it was in 2009–10, Flaherty announced, and it is projected to shrink by more than 25 per cent again in 2011–12. The government is expected to record a surplus of $4.2 billion by 2015–16. Liberal Leader Michael Ignatieff responded to the budget saying that the Conservative budget hides billions in wasteful spending and offers next to nothing for Canadian families. “Liberals cannot support a budget that is so out-of-touch with the priorities of Canadian families, while the government pours tens of billions into prisons, stealth fighters and corporate tax cuts,” Ignatieff said. “How can any progressive MP support a government that ignores Canadian families and instead ‘stays the course’ on $6 billion in tax breaks for large corporations, a $30-billion untendered stealth fighter deal and $13 billion for US-style mega prisons?” The true failure in the proposed budget is that it doesn’t address the real day-to-day needs of Canadians agrees NDP Alex Atamanenko, MP for BC Southern Interior. The Conservatives are continuing with their corporate tax giveaways with a further $2 Billion going to the most profitable corporations in January of 2012, commented Atamanenko, attacking the money to be spent on new prisons, even though the crime rate is decreasing. “At the same time, we see 156,000 fewer full time jobs and the creation of an overwhelming proportion of part-time jobs”, said the NDP MP. “This is not the direction that is right for the country. Clearly, the Prime Minister is not prepared to work with Parliament for the good of our country”. The Canadian Taxpayers Federation (CTF) however, gave a mixed reaction to today’s federal budget. While withstanding opposition calls to hike business taxes, Budget 2011 increases spending and continues to project deficits into 2015-16. “This budget fails to control spending and get serious about the deficit,” said CTF national research director and acting federal director, Derek Fildebrandt. “Rather than return program spending to pre-recession levels, spending will continue to increase by an average of 2% over the next five years. That’s not austerity. That’s a permanent increase in the size of government.” Turning towards business taxes, Fildebrandt was supportive, “The government should be commended for standing up to irresponsible calls from the opposition to undo job-creating business tax relief. Unfortunately, this positive policy is eroded by continuing to dole out more corporate welfare.”
