Budget 2000 - Budget in Brief - 2
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This budget proposes initiatives totalling $4.1 billion between 1999-2000 and 2002-03 to promote leading-edge research and innovation in universities, research hospitals and the private sector; to develop new environmental technologies and improve environmental practices; and to strengthen federal, provincial and municipal infrastructure.

Investing in Innovation, Knowledge and Skills

The budget builds on the Canadian Opportunities Strategy introduced in the 1998 budget and expanded in the 1999 budget. It:

Promoting Environmental Technologies and Practices

Strengthening Federal, Provincial and Municipal Infrastructure


Improving the Quality of Life of Canadians and Their Children

Increased Support for Post-Secondary Education and Health Care

Support for Families With Children

Assistance for Canadians With Disabilities

Summary of Spending and Tax Actions

Table 1 presents the fiscal outlook to 2001-02, taking into account all of the spending and tax measures announced since the 1999 budget.

Table 2 presents the fiscal impact of the spending and tax initiatives announced in this budget, Table 3 presents the fiscal impact of the measures announced before the budget while Table 4 shows the total fiscal impact of the spending and tax measures proposed since the 1999 budget. The cost of these proposed spending and tax actions amounts to $6.2 billion in 1999-2000, $7.7 billion in 2000-01, $12.0 billion in 2001-02 and $14.6 billion in 2002-03.

During the four years from 1999-2000 to 2002-03, the cost of the spending and tax actions proposed since the 1999 budget will amount to $40.4 billion (Table 4).

Of this amount, $16.8 billion is for spending initiatives. This includes $2.5 billion for the CHST; $4.1 billion for research, innovation, environmental initiatives and infrastructure; and $1.7 billion for economic adjustments, primarily further farm assistance.

The tax relief measures legislated through this budget, including the assumed reductions in employment insurance premiums, amount to $23.6 billion over this fiscal year and the following three years.

Table 1
Summary Statement of Transactions: The Two-Year Planning Horizon


1997-1998 1998-1999 1999-2000 2000-2001 2001-2002

(billions of dollars)
Budgetary transactions
  Budgetary revenues 153.2 155.7 160.0 162.0 168.0
  Program spending 108.8 111.4 115.5 116.0 121.5
  Operating balance 44.4 44.3 44.5 46.0 46.5
  Public debt charges 40.9 41.4 41.5 42.0 41.5
  Underlying budgetary balance 3.5 2.9 3.0 4.0 5.0
Prudence
  Economic prudence 1.0 2.0
  Contingency Reserve 3.0 3.0 3.0
  Total 3.0 4.0 5.0
Budgetary balance 3.5 2.9 0.0 0.0 0.0
Net public debt 579.7 576.8 576.8 576.8 576.8
Non-budgetary transactions 9.3 8.6 8.0 -5.0 0.0
Financial requirements/surplus 12.7 11.5 8.0 -5.0 0.0
Percentage of GDP
  Budgetary revenues 17.5 17.4 16.9 16.2 16.1
  Program spending 12.4 12.4 12.2 11.6 11.6
  Public debt charges 4.7 4.6 4.4 4.2 4.0
  Total expenditures 17.1 17.1 16.6 15.8 15.6
  Budgetary balance 0.4 0.3 0.0 0.0 0.0
  Net public debt 66.3 64.4 61.1 57.8 55.2
  Financial requirements/surplus 1.5 1.3 0.8 -0.5 0.0

Note: Numbers may not add due to rounding.

Table 2
Spending and Tax Initiatives Announced in the 2000 Budget


1999-2000 2000-2001 2001-2002 2002-2003 Cumulative total

(millions of dollars)
Spending initiatives announced in this budget
Improving the quality  of life for Canadians and their children
Post-secondary education and health care1 2,500 2,500
Support for families with children 607 965 1,572
Opportunities for Canadians with disabilities 33 37 32 102
   Total 2,500 33 643 997 4,173
Making Canada’s economy more innovative
Investing in research and innovation 1,095 208 278 268 1,849
Promoting environmental technologies and practices 235 148 143 159 685
Strengthening federal, provincial and municipal infrastructure 300 550 750 1,600
   Total 1,330 656 971 1,177 4,134
Maintaining essential public services
Defence 350 400 550 600 1900
Furthering international co-operation 175 110 155 200 640
Operating and capital 118 795 834 760 2,506
   Total 643 1,305 1,539 1,560 5,046
Total spending initiatives 4,473 1,994 3,153 3,733 13,353
Tax initiatives announced in this budget
Personal tax relief 2,835 4,600 5,830 13,265
Canada Child Tax Benefit 475 1,020 1,350 2,845
Corporate income tax 5 390 545 940
Reduction in employment insurance premiums2 235 1,010 1,805 3,050
Tax fairness measures 15 40 45 100
Total 3,565 7,060 9,575 20,199
Total spending and tax initiatives announced in this budget 4,473 5,559 10,213 13,308 33,552

1 CHST supplement in 1999-2000 will be paid to a third-party trust in 2000-01, on passage of authorizing legislation. Expected drawdown by provinces and territories is described in the booklet Improving the Quality of Life of Canadians and Their Children.
2 For planning purposes, employee EI premium rates are assumed to decline by 10 cents in 2001, 2002 and 2003. Actual rates are set each year by the Employment Insurance Commission.
Note: Numbers may not add due to rounding.

Table 3
Spending and Tax Initiatives Announced Before the 2000 Budget


1999-2000 2000-2001 2001-2002 2002-2003 Cumulative
total

(millions of dollars)
Spending initiatives announced before the budget
Improving the quality of life for Canadians and their children
Assisting the homeless 63 235 220 220 738
Maintaining essential public services
Defence 284 146 429
Economic adjustment 661 511 500 1,672
Operating and capital 387 205 592
   Total 1,331 862 500 2,693
Total spending initiatives 1,394 1,097 720 220 3,430
Tax initiatives announced before the budget
Reduction in EI premium rates 345 1,157 1,165 1,175 3,841
Tobacco taxes -25 -140 -140 -140 -445
  Total 320 1,017 1,025 1,035 3,396
Total spending and tax initiatives announced before this budget 1,713 2,114 1,745 1,255 6,826

Note: Numbers may not add due to rounding.

Table 4
Summary: Spending and Tax Initiatives Since the 1999 Budget


1999-2000 2000-2001 2001-2002 2002-2003 Cumulative
total

(millions of dollars)
Spending initiatives
Improving the quality of life for Canadians and their children
Post-secondary education and health care 2,500 2,500
Support for families with children 607 965 1,572
Opportunities for Canadians with disabilities 33 37 32 102
Assisting the homeless 63 235 220 220 738
   Total 2,563 268 863 1,217 4,911
Making Canada’s economy more innovative
Investing in research and innovation 1,095 208 278 268 1,849
Promoting environmental technologies and practices 235 148 143 159 685
Strengthening federal, provincial and municipal infrastructure 300 550 750 1,600
  Total 1,330 656 971 1,177 4,134
Providing essential public services
Defence 634 546 550 600 2,329
Furthering international co-operation 175 110 155 200 640
Economic adjustment 661 511 500 1,672
Operating and capital 505 1,000 834 760 3,098
  Total 1,974 2,167 2,039 1,560 7,739
Total spending initiatives 5,867 3,091 3,873 3,953 16,783
Tax initiatives
Personal tax relief 2,835 4,600 5,830 13,265
Canada Child Tax Benefit 475 1,020 1,350 2,845
Corporate income tax -65 320 475 730
Reduction in EI premiums 345 1,392 2,174 2,980 6,890
Tax fairness measures -25 -55 -30 -25 -135
  Total 320 4,582 8,084 10,610 23,595
Total spending and tax initiatives 6,186 7,672 11,957 14,563 40,378

Note: Numbers may not add due to rounding.
How Can I Get More Information on the 2000 Budget?

Information is available on the Internet athttp://www.fin.gc.ca/

You can also obtain copies of this brochure or other budget documents from the

Department of Finance Canada
Distribution Centre
300 Laurier Avenue West
P1 West Tower
Ottawa, Canada
K1A 0G5

Tel.: (613) 995-2855
Fax: (613) 996-0518

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