2013 Canadian federal budget

none Budget of the Canadian Federal Government 2013 Canada 2012 Canadian federal budget 2012 2014 Canadian federal budget 2014 21 March 2013 41st Conservative Jim Flaherty 263.9 billion (Projected)271.7 billion (Actual) 282.6 billion (Projected)279.7 billion (Actual) 18.9 billion (Projected)8.1 billion (Actual) http://www.budget.gc.ca/2013/doc/plan/toc-tdm-eng.html The Canadian federal budget for fiscal year 2013–14 was presented to the House of Commons of Canada by Finance Minister Jim Flaherty on 21 March 2013. The budget bill was tabled in the legislature on 29 April 2013 as the Economic Action Plan 2013 Act, No. 1.MacKinnon 2013 A second budget bill will be tabled in the autumn, which will include elements excluded from the first bill, such as the Canada Job Grant.MacKinnon 2013 The deficit was projected to be $18.7 billion for the fiscal year 2013-2014,https://www.budget.gc.ca/2013/doc/plan/toc-tdm-eng.html# Budget 2013 - Budget Plan: Table of Contents Department of Finance www.budget.gc.ca 2018-10-21 however this was adjusted to $8.1 billion by end of the fiscal year and once the Auditor General's recommendations on the Government's unfunded pension obligations were taken into account.https://www.fin.gc.ca/afr-rfa/2014/report-rapport-eng.asp#toc1 Archived - Annual Financial Report 2013-2014 Department of Finance www.fin.gc.ca 2018-10-21https://www.fin.gc.ca/afr-rfa/2018/report-rapport-eng.asp#_Toc525903642 Annual Financial Report of the Government of Canada 2017-2018 Department of Finance www.fin.gc.ca 2018-10-21 2018-10-22 https://web.archive.org/web/20181022221547/https://fin.gc.ca/afr-rfa/2018/report-rapport-eng.asp#_Toc525903642 dead Taxation There were no new tax measures or tax reductions in the proposed budget bill, but some tax loopholes were eliminated, which is expected to generate an additional $880 million in tax revenues annually.Isfeld 2013 Tariffs As a result of the 2013 budget, import tariffs for 37 goods were eliminated—specifically sporting goods (excluding bicycles) and baby clothing made of "cotton, synthetic fibres, textile materials, wool or fine animal hair".CBC News: Federal budget 2013 Such cuts were expected to result in decreased tax revenues of $76 million for the Government of Canada.Beltrame 2013 Tariffs on other goods in 1290 product classesMoffatt 2013 were increased owing to a change in status classification of 72 trading nations from "developing" status to "fully developed". Imports from nations including Brazil, China, India, Indonesia, and Russia were affected by reclassification, as they were no longer subject to the general preferential tariff (GPT).Moffatt 2013 The average increase was 3%, and would result in $333 million annually in additional tax revenues for the Canadian government.Beltrame 2013 The tariffs took effect 1 January 2015.Payton 2014 Doug Porter, the chief economist of the Bank of Montreal, expressed concern about adverse effects, commenting that such increases would widen the disparity in prices of goods in Canada compared to the same goods in the United States, which may aggravate cross-border shopping.Beltrame 2013 The budget also provided that rules of origin would be amended "to ensure imported textiles and apparel from poorer nations" would not be affected if their manufacture requires materials from promoted nations.Beltrame 2013 Some goods affected by these tariff increases included solid-state drives and USB devices (from no tariff to 6%), most of which are imported from China, South Korea, Thailand and Malaysia, four of the nations losing GPT status.Moffatt 2013 Tax evasion The budget proposal included a reward system for individuals who report Canadians with an offshore account, and eliminated the tax deduction for leasing a safe deposit box.Yew 2013 The Stop International Tax Evasion Program enabled the Canada Revenue Agency to reward informants up to 15% of taxes collected if it exceeds $100,000. Critics complained that a planned $60 million cut of the CRA budget and its limited resources imply the CRA would not be able to investigate or pursue tax evaders.Gollom 2013 Another criticism was that the reward may be too small, or that most rewards may be accrued by non-Canadians working in offshore institutions.Gollom 2013 Walid Hejazi of the Rotman School of Management said that the program is unlikely to generate much revenue, but may act as a deterrent for some potential tax evaders.Gollom 2013 Personal taxes There was an increase in the lifetime capital gains exemption to $800,000,Serebrin 2013 which was indexed to inflation,Kelly 2013 a reduction of the dividend tax credit, and elimination of the use of financial strategies such as loss trading and synthetic disposition. The budget introduced measures requiring financial institutions to report any electronic fund transfer exceeding $10,000.Yew 2013 Corporate taxes The capital cost allowance (CCA) for manufacturing and processing equipment was extended to the end of 2015.Steinberg Voyer 2013 The budget also allocated $60 million over five years for use by incubator and accelerator investment organizations,Braga 2013 and $70 million over three years to create 5,000 internship positions for recent post-secondary graduates.Cohen 2013 Expenditures The Federal Economic Development Agency for Southern Ontario had its funding renewed for another five years, averaging about $184 million annually.Serebrin 2013 Borders The budget proposal approved projects related to information-sharing and infrastructure for the "Beyond the Border" perimeter security program undertaken with the United States.Blanchfield 2013 This included upgrading border posts at Saint-Bernard-de-Lacolle (Quebec), Landsdowne (Ontario), Emerson (Manitoba), and North Portal (Saskatchewan), implementation of a cargo security program for port facilities in Vancouver and Montreal,Blanchfield 2013 and $19 million toward the Detroit River International Crossing.de Souza 2013 Privacy advocates and civil liberties groups criticized the data sharing arrangement, in which Canada and the United States share with each other information about land entry and exit of individuals, to be used for immigration, refugee, and visa programs.Blanchfield 2013 In order to cover the costs associated with processing visa claims and immigration applications, the budget proposal allocated an additional $42 million for visa and $44 million for citizenship programs. This was expected to reduce the backlog of almost 320,000 unprocessed citizenship applications. The costs for submitting an application were also increased.Levitz 2013 Infrastructure spending The proposal allocated about $2 billion annually from gasoline tax revenues to municipalities for infrastructure development and maintenance, including public transit,de Souza 2013 under the Community Improvement Fund starting in 2014–2015.CBC News: Cities get another round of infrastructure money It replaced the similar fund introduced in the 2005 budget by the 38th Canadian Parliament,de Souza 2013 and increased by 2% annually.CBC News: Cities get another round of infrastructure money Infrastructure projects that may use such funding include highways, short-line rail, regional and local airports, short-sea shipping, broadband internet connectivity, redevelopment of brownfields, disaster mitigation, and those involving culture, tourism, or sport and recreation.CBC News: Cities get another round of infrastructure money Municipalities will receive funding for projects on a per capita basis.de Souza 2013 It also allocated $248 million for weather monitoring infrastructure.Paris 2013 The Building Canada Fund managed by Infrastructure Canada was renewed for ten years, receiving $210 million in 2014-2015, and increasing annually to $2.1 billion in 2021-2022.Smith 2013 About $4 billion over ten years was allocated for projects of national significance, including development and expansion of public transit and roads, and $155 million to be used for First Nations infrastructure programs.Smith 2013 The fund was also extended for use by educational institutions and airports.CBC News: Municipal funding best budget news, says federation The Goods and Services Tax rebate for municipalities was also extended for 10 years,Smith 2013 by which municipalities will be able to collectively claim about $1 billion annually via the GST Rebate for Municipalities.CBC News: Cities get another round of infrastructure money Environment In a press release on 21 March 2013, the Nature Conservancy of Canada supported the $20 million, one-year extension of the Natural Areas Conservation Program, a national public-private partnership by which ecologically sensitive lands are acquired and conserved.Nature Conservancy of Canada 2013 Sustainable Development Technology Canada, a government-funded venture capital firm, was allocated to receive $325 million over eight years.Paris 2013 Culture Government event promotion and execution, such as activities related to Canada Day and Winterlude, were transferred from the National Capital Commission to the Department of Canadian Heritage, which also resulted in the transfer of up to 80 employees.CBC News: Heritage to take over Canada Day, Winterlude The budget allocated $8 million to renovate Massey Hall in Toronto.CBC News: Highlights from the 2013 federal budget Canada Job Grant The budget established the Canada Job Grant, which provides $5,000 for an individual's training in trades and skills,Wingrove Séquin Bailey Taber 2013 requiring matching funds from provincial governments and the individual's employer.Johnson 2013 The Canada Job Grant is a training fund, that was established in 2014CBC News: Highlights from the 2013 federal budget via the budget, which will enable individuals to receive up to $15,000 in training services, funded equally by the federal government, a provincial government, and the individual's employer.Kofmel 2013 The federal government expects to fund the $300 million programWhittington 2013 by renegotiating the Labour Market Agreement it has with each of the provinces, which expired in 2014.Kofmel 2013 The program will train 130,000 individuals annually when it is fully operational.Babbage Panetta Keller 2013 Brad Duguid, Ontario's minister of training, colleges, and universities, stated that the program will shift $194 million from programs "that target our most vulnerable and have the greatest barriers to entering the workforce".Kofmel 2013 Quebec's Minister of Finance, Nicolas Marceau, stated that the federal government was "undoing and sabotaging what Quebec has long been doing".Kofmel 2013 On 22 March 2013, Labour Minister Agnes Maltais of the Government of Quebec formally requested exclusion from the program.Babbage Panetta Keller 2013 It prefers to operate its own program, instead of participating in a joint federal-provincial program.Babbage Panetta Keller 2013Whittington 2013 Objections were also raised by First Nations about a five-year $241 million skills training program available only to reserves which make it "mandatory for those receiving income assistance payments to be retrained".Whittington 2013Scoffield 2013 Provincial government officials also stated that it removed full control of spending of the funds by the provinces. Marceau described it as "economic sabotage".Wingrove Séquin Bailey Taber 2013 At the July 2013 Council of the Federation at Niagara-on-the-Lake, premiers unanimously opposed the Canada Job Grant, and Ontario premier Kathleen Wynne stated "It's not going to work the way it is".CBC News:Premiers stand united against federal jobs training plan Other impacts of the federal budget Approximately 12,000 government services employees were laid-off, and 7,000 jobs were eliminated via attrition.Argitis 2013 the budget enabled a government official to sit at any collective bargaining negotiation between a Crown corporation and its employees, and the government must approve the terms of such negotiations.MacKinnon 2013 The budget bill also called for administrative changes to government operations. It merged the Canadian International Development Agency into the Department of Foreign Affairs and International Trade.CBC News: Federal budget folds CIDA into Foreign Affairs The budget discontinued funding for mixed police squads, that is police squads composed of members from police services of more than one municipality.CBC News: Quebec crime-fighting mixed police squads to lose federal funding This funding had been used in Quebec to fund regional police services "to help fight organized crime".CBC News: Quebec crime-fighting mixed police squads to lose federal funding The opposition parties have complained that the budget bill is an omnibus bill, like the 2012 budget, containing non-budgetary items.MacKinnon 2013 The government invested $23 million over two years to attract foreign students.Cohen 2013 Reactions The budget was poorly received by the general public. A pan-canadian poll carried out by Leger Marketing showed that 52 % of Canadians were dissatisfied with the federal budget (of which 23 % were not satisfied at all) and only 29 % were satisfied. Satisfaction was highest in Alberta (51 %) and the lowest in Quebec (15 %) and the Atlantic provinces (16 %).Leger Marketing Federal Politics in Canada http://leger360.com/admin/upload/publi_pdf/enca_20130330.pdf https://web.archive.org/web/20160221233543/http://leger360.com/admin/upload/publi_pdf/enca_20130330.pdf 2016-02-21 25 August 2020 en 30 March 2013 Provinces Nicolas Marceau, Quebec's Finance Minister, severely criticized the federal budget as a frontal attack on Quebec and an economic sabotage undertaking.Robillard Alexandre Budget: Marceau en colère après une "attaque frontale" d'Ottawa https://www.lapresse.ca/actualites/politique/politique-quebecoise/201303/21/01-4633506-budget-marceau-en-colere-apres-une-attaque-frontale-dottawa.php 25 August 2020 La Presse 21 March 2013 frLessard Denis "Une attaque frontale contre le Québec " http://numerique.banq.qc.ca/patrimoine/details/52327/2624332 25 August 2020 La Presse 22 March 2013 fr Raymond Bachand, Liberal MNA and predecessor of Nicolas Marceau as Quebec's Finance Minister, regretted that the budget plans the phase-out of the Labour-sponsored funds tax credit between 2015 and 2017. See also List of tariffs in Canada 2013 Ontario provincial budget Notes 3 References 2 http://business.financialpost.com/2013/03/22/flahertys-thrifty-budget-keeps-canada-worthy-of-top-credit-rating-in-g7/ Flaherty's thrifty budget keeps Canada worthy of top credit rating in G7 Argitis Theophilos Bloomberg News Financial Post Postmedia Network 22 March 2013 22 April 2013 http://www.macleans.ca/2013/03/22/quebec-we-want-out-of-this-new-federal-skills-program/ We want out of this new federal skills program Babbage Maria Panetta Alexander Keller James The Canadian Press Maclean's Rogers Communications 22 March 2013 28 April 2013 https://web.archive.org/web/20130428014557/http://www2.macleans.ca/2013/03/22/quebec-we-want-out-of-this-new-federal-skills-program/ http://www.brandonsun.com/business/breaking-news/hockey-gear-cheaper-but-tariff-changes-likely-to-widen-canada-us-price-gap-199559021.html Hockey gear cheaper, but tariff changes likely to widen Canada-U.S. price gap Beltrame Julian The Canadian Press Brandon Sun 22 March 2013 22 April 2013 https://ottawacitizen.com/news/Budget+confirms+perimeter+security+trade+projects+CanadaU/8133651/story.html Budget confirms perimeter security, trade projects on Canada-U.S. border pact Blanchfield Mike The Canadian Press Ottawa Citizen Postmedia Network 21 March 2013 22 April 2013 http://business.financialpost.com/2013/03/22/budget-earmarks-60-million-for-accelerators-incubators/ Budget earmarks $60-million for accelerators, incubators Braga Matthew Financial Post National Post 22 March 2013 10 June 2013 https://nationalpost.com/news/budget-aims-at-retraining-to-meet-demand-in-skilled-trades Budget aims at retraining to meet demand in skilled trades Cohen Tobi National Post 21 March 2013 10 June 2013 https://nationalpost.com/news/politics/canada-budget-extends-infrastructure-spending-with-10-year-53-5b-plan Canada budget extends infrastructure spending with 10-year, $53.5B plan de Souza Mike National Post Postmedia Network 21 March 2013 22 April 2013 https://www.cbc.ca/news/canada/experts-doubt-tax-snitching-can-bring-in-new-revenue-1.1311783 Experts doubt tax-snitching can bring in new revenue Gollom Mark CBC News 22 March 2013 22 April 2013 http://business.financialpost.com/2013/03/21/2013-federal-budget-canada-deficit/ Conservatives see $4.4B new revenue from tax loophole closures Isfeld Gordon Financial Post National Post 21 March 2013 22 March 2013 https://www.ctvnews.ca/canada/article/budget-2013-is-ottawa-really-on-track-to-balance-the-books/ Budget 2013: Is Ottawa really on track to balance the books? Johnson Andy CTV News 22 March 2013 22 April 2013 http://business.financialpost.com/2013/03/21/federal-budget-earns-a-b-from-small-business-owners/ Federal budget earns a "B" from small business owners Kelly Dan Financial Post Postmedia Network 21 March 2013 22 April 2013 https://vancouversun.com/news/2013-budget/Federal+grant+program+gets+mixed+reception+from/8140315/story.html Federal job grant program gets mixed reception from provinces, business Kofmel Karl Postmedia News Vancouver Sun Postmedia Network 22 March 2013 22 April 2013 https://web.archive.org/web/20130325072032/http://www.vancouversun.com/news/2013-budget/Federal%2Bgrant%2Bprogram%2Bgets%2Bmixed%2Breception%2Bfrom/8140315/story.html 25 March 2013 https://www.ctvnews.ca/politics/article/budget-2013-cost-of-becoming-a-canadian-citizen-likely-to-rise/ Budget 2013: Cost of becoming a Canadian citizen likely to rise Levitz Stephanie The Canadian Press CTV News BellMedia 21 March 2013 22 April 2013 https://www.cbc.ca/news/politics/flaherty-tables-slimmed-down-budget-bill-1.1390040 Flaherty tables slimmed-down budget MacKinnon Leslie CBC News 29 April 2013 8 June 2013 https://www.theglobeandmail.com/report-on-business/economy/economy-lab/canadian-consumers-will-feel-the-pain-of-ottawas-tariff-hikes/article10753547/ Canadian consumers will feel the pain of Ottawa's tariff hikes Budget 2013 Moffatt Mike The Globe and Mail 4 April 2013 8 June 2013 https://www.cbc.ca/news/politics/budget-offers-little-new-on-the-environmental-front-1.1305690 Budget offers little new on the environmental Paris Max CBC News 21 March 2013 22 April 2013 http://www.cbc.ca/news/politics/price-gap-help-could-be-cancelled-out-with-higher-tariffs-1.2866037 Price gap help could be cancelled out with higher tariffs Payton Laura CBC News 10 December 2014 11 December 2014 https://nationalpost.com/news/politics/federal-budget-ties-welfare-for-first-nations-youth-to-job-training Federal budget ties welfare for First Nations youth to job training Scoffield Heather The Canadian Press National Post Postmedia Network 21 March 2013 22 April 2013 https://www.thestar.com/business/small_business/money/2013/03/22/canadian-conservative-federal-budget-implications-for-small-busi.html Canadian Conservative Federal Budget Implications for small business and entrepreneurs Serebrin Jacob Toronto Star Toronto Star Newspapers 22 March 2013 22 April 2013 https://www.thestar.com/news/canada/federalbudget/2013/03/21/federal_budget_2013_conservatives_invest_14_over_10_years_in_renewed_infrastructure_deal_for_canadian_cities.html Federal budget 2013: $14B to be devoted over 10 years the renewed infrastructure for cities Smith Joanna Toronto Star Toronto Star Newspapers 21 March 2013 22 April 2013 https://www.theglobeandmail.com/report-on-business/small-business/sb-money/business-funding/what-small-businesses-should-know-about-the-new-federal-budget/article10161957/ What small businesses should know about the new federal budget Steinberg David Voyer Ron The Globe and Mail 22 March 2013 10 June 2013 https://www.thestar.com/news/canada/federalbudget/2013/03/22/federal_budget_2013_quebec_furious_over_support_for_ontario_manufacturing_industry.html Federal Budget 2013: Quebec furious over support for Ontario manufacturing industry Whittington Les Toronto Star Toronto Star Newspapers 22 March 2013 22 April 2013 https://www.theglobeandmail.com/news/politics/some-provinces-chafing-at-cost-implications-of-ottawas-job-training-plan/article10117483/ Some provinces chafing at cost implications of Ottawa's job-training plan Wingrove Josh Séquin Rhéal Bailey Ian Taber Jane The Globe and Mail 21 March 2013 8 June 2013 https://www.thestar.com/news/canada/federalbudget/2013/03/21/federal_budget_2013_tax_loopholes_hidden_offshore_money_targeted.html Federal budget 2013: Tax loopholes, hidden offshore money targeted Yew Madhavi Acharya-Tom Toronto Star Toronto Star Newspapers 21 March 2013 22 April 2013 https://www.cbc.ca/news/canada/federal-budget-2013-cheaper-hockey-gear-baby-clothes-1.1410110 Federal budget 2013: Cheaper hockey gear, baby clothes CBC News 21 March 2013 22 March 2013 CBC News: Federal budget 2013 https://www.cbc.ca/news/politics/federal-budget-folds-cida-into-foreign-affairs-1.1412948 Federal budget folds CIDA into Foreign Affairs CBC News 22 March 2013 22 March 2013 CBC News: Federal budget folds CIDA into Foreign Affairs https://www.cbc.ca/news/canada/ottawa/heritage-to-take-over-canada-day-winterlude-from-ncc-1.1340319 Heritage to take over Canada Day, Winterlude CBC News 21 March 2013 22 April 2013 CBC News: Heritage to take over Canada Day, Winterlude https://www.cbc.ca/news/canada/prince-edward-island/municipal-funding-best-budget-news-says-federation-1.1305165 Municipal funding best budget news, says federation CBC News 22 March 2013 22 April 2013 CBC News: Municipal funding best budget news, says federation https://www.cbc.ca/news/politics/highlights-from-the-2013-federal-budget-1.1302281 Highlights from the 2013 federal budget CBC News 21 March 2013 22 March 2013 CBC News: Highlights from the 2013 federal budget https://www.cbc.ca/news/canada/ottawa/cities-get-another-round-of-infrastructure-money-1.1343414 Cities get another round of infrastructure money CBC News 2013-03-21 8 June 2013 CBC News: Cities get another round of infrastructure money https://www.cbc.ca/news/canada/montreal/quebec-crime-fighting-mixed-police-squads-to-lose-federal-funding-1.1305857 Quebec crime-fighting mixed police squads to lose federal funding CBC News 23 March 2013 10 June 2013 CBC News: Quebec crime-fighting mixed police squads to lose federal funding https://www.cbc.ca/news/politics/wynne-says-federal-jobs-plan-not-going-to-work-the-way-it-is-1.1357114 Premiers stand united against federal jobs training plan CBC News 25 July 2013 25 July 2013 CBC News:Premiers stand united against federal jobs training plan http://www.budget.gc.ca/2013/doc/plan/chap4-2-eng.html#a0-Chapter-42-Fiscal-Planning-Framework Budget 2013 - Chapter 4.2: Fiscal Planning Framework Department of Finance 23 March 2014 Department of Finance 2013 http://www.newswire.ca/en/story/1133985/2013-federal-budget-supports-conservation 2013 Federal Budget Supports Conservation Nature Conservancy of Canada Canada Newswire Toronto 21 March 2013 22 April 2013 https://web.archive.org/web/20160315135103/http://www.newswire.ca/news-releases/2013-federal-budget-supports-conservation-512119081.html 15 March 2016 External links Budget 2013 at Finance Canada Federal budget 2013-14: continued focus on jobs and long-term growth, Tax Alert - Canada (2013, issue 10, 21 March 2013) by Ernst & Young Canada: 2013 Federal Budget Highlights by Davies Ward Phillips & Vineberg LLP, 22 March 2013 Jim Flaherty: "I intend to stay until the budget is balanced in 2015" at National Post, by John Ivison, 22 March 2013 Federal budget ignites debate over what science is forat The Globe and Mail, by Ivan Semeniuk, 25 March 2013 2013 Canada Category:2013 in Canadian politics Budget, 2013 Budget, 2013 Budget, 2013 Category:March 2013 in Canada