Budget 1995 Fact Sheets - 1
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Archived - 1995 Budget: Key Actions and Impacts

• Key interim deficit target met: 3 per cent of GDP by 1996-97 - $24.3 billion
• Debt-to-GDP ratio - size of debt relative to the economy - begins to decline in 1996-97
• Three-year savings of $29 billion; $25.3 billion from expenditure cuts
• Almost $7 in expenditure reductions for every $1 in new tax revenues
• No increases in personal income tax rates
• Dramatic cuts in departmental budgets - some halved in three years
• Smaller public service - 45,000 fewer positions
• Major reform of programs: agriculture, transport
• Business subsidies cut 60 per cent
• Programs merged, consolidated, commercialized
• Increased cost recovery, including $975 immigration fee per adult immigrant
• New Canada Social Transfer to provinces in 1996-97
• Unemployment insurance reform intended to be in place July 1, 1996
• Course charted for public pension system reform
• Tax fairness improved: tighter rules for tax deferrals, foreign and family trusts,R&D incentives
• New measures to ensure collection of taxes owed
• RRSP contribution limits reduced; retiring allowance rollovers phased out; overcontribution allowance cut
• Higher taxes for corporations, large banks
• Federal excise tax on gasoline increased by 1.5 cents per litre to help reduce the deficit

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