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Overview: A New Agenda for Achievement

This is Ralph Goodale, Minister of Finance. I’m pleased to present the Government of Canada’s budget for year 2004 and our new agenda for achievement.

That agenda includes:

• improving accountability and integrity in government spending;
• sustaining our health care system;
• supporting learning by providing young Canadians with tools to succeed, while encouraging lifelong learning for all;
• laying a solid foundation for a new deal for Canadian communities;
• supporting innovative Canadian industries and enhanced productivity; and 
• building and strengthening Canada’s international stature.

That’s an agenda for a Canada of success.

Economic and Fiscal Prospects

Because of a series of shocks in 2003, including SARS, a BSE case, forest fires in British Columbia, a Nova Scotia hurricane, a power blackout in Ontario and a 20 per cent jump in the value of the Canadian dollar, economic growth came in at only 1.7 per cent last year, well below the 3.2 per cent forecast in the previous budget.

A consensus view of private sector economists calls for a turnaround, with growth of 2.7 per cent in 2004 and 3.3 per cent in 2005. But it will take some time for our economy to fully recover.

Nevertheless, Canada is the only G-7 country expected to post balanced budgets or better in each of the next two years.

Responsible and Prudent Financial Management

Canadians rightly demand their hard-earned tax dollars be spent on their priorities. They deserve responsible management and full accountability on how these dollars are spent.

Budget 2004 delivers.

It sets a new direction in delivering the accountability Canadians expect.

It pledges to uncover significant flexibility to reinvest in new programs for health, learning, and communities.

And it maintains a $3 billion contingency reserve that, if not needed for emergencies, will be used to reduce debt. It provides a further $1 billion cushion in each of the next two years to pay for the unexpected. 

A New Deal for Communities

Budget 2004 takes the first steps on the government’s new deal for communities.

The new deal means stable long-term funding for communities of all sizes and improved infrastructure, such as roads, water and transit systems.

It is about partnership and giving communities a stronger voice in decisions that affect them.

In this budget, communities are getting $7 billion in GST relief over the next 10 years, and billions more, and faster, to boost infrastructure and clean up the environment.

In short, we are doing our part to improve the quality of life of all Canadians – regardless of where they live. 

Building an Innovative Economy for the 21^st Century

Research and innovation are crucial to Canada’s long-term economic prosperity.

Budget 2004 sets out a series of investments to enhance our ability to succeed in an increasingly competitive knowledge-based global economy.

These measures include increased funding for Canada’s research granting councils, additional funding for venture capital financing and new tax incentives to provide support for Canada’s small business sector.

The Importance of Health

The Government of Canada is working towards a new partnership with the provinces and territories that focusses on sustaining our universal health care system – the number one priority of Canadians. All First Ministers have agreed upon a process leading to another meeting of the Prime Minister and the premiers this summer.

In the meantime, Budget 2004:

• establishes a new Canada Public Health Agency, which will be a focal point in Canada’s national network for disease control and emergency response;
• provides immediate funding of $665 million over two years to improve Canada’s readiness to deal with public health emergencies; and
• confirms a one-time $2 billion transfer to the provinces for health, bringing to $36.8 billion the funding provided under the 2003 Health Accord.

Federal cash transfers to provinces and territories for medicare are rising at 8 per cent per year. That’s much faster than the overall economic growth rate.

Learning: Cornerstone of Canada's Economic and Social Progress

Education is the key to securing a higher standard of living and a better quality of life for all Canadians.

Canadians recognize that the learning process starts at birth and continues throughout life.

Budget 2004 reflects this reality, with measures to help families save for their children’s education from their very earliest days, enhancements to the Canada Student Loans program, and steps to encourage lifelong learning and workplace skills.

Our Relationship to the World

We intend to restore Canada’s place of influence and pride on the global stage.

Budget 2004 supports these priorities by introducing a series of targeted initiatives.

These include $300 million in new funding for Canadian Forces’ participation in Afghanistan and Haiti, tax relief for Canadian Forces personnel serving on high-risk international missions, and a $248 million increase in international assistance.

We’re investing globally in those precious Canadian values that make our country a unique example of successful pluralism, inclusion, and tolerance.