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Archived - Introduction

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Canada's economic and fiscal fundamentals are rock solid, yet the world economy is experiencing turbulence and increased uncertainty.

Given this global economic uncertainty, now is the time to act. Our strong fiscal position provides Canada with an opportunity that few other countries have-to make broad-based tax reductions that will strengthen our economy, stimulate investment and create more and better jobs.

Today, the Government is taking bold new steps to build a better Canada. We are reducing taxes further for Canadians and ushering in a new era for Canadian business taxation, while further reducing the federal debt.

This Economic Statement provides a total of $60 billion in broad-based tax relief over this year and the next five years. This brings total tax relief provided by this Government since coming to office to almost $190 billion over the same period.

Canada is the greatest country in the world, a nation of enormous potential built through the imagination and dedication of ordinary Canadians. Canadians expect their Government to build on this legacy by setting clear goals, delivering results, being accountable and putting Canadians and their families first.

Highlights

Recent Economic Developments and Prospects

  • A significantly weaker U.S. housing market and tighter credit conditions have added uncertainty to the U.S. economic outlook.
  • The Canadian dollar has traded above parity with the U.S. dollar for the first time in 30 years, due in part to continued increases in commodity prices and generalized U.S.-dollar weakness. This is increasing pressure on our trade sector.

Fiscal Projections

Broad-Based Tax Reductions for Canadians

This Economic Statement proposes broad-based tax relief for individuals, families and businesses of almost $60 billion over this and the next five fiscal years. Combined with previous relief provided by this Government, total tax relief over the same period is almost $190 billion.

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