Ottawa, February 26, 2008
Archived - Budget 2008: Responsible Leadership for Uncertain Times
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Building on the Government's 2007 Economic Statement, the Honourable Jim Flaherty, Minister of Finance, today tabled a balanced, focused and prudent budget to strengthen Canada amidst global economic uncertainty. Budget 2008 continues reducing debt and taxes, focuses government spending, and provides additional support for sectors of the economy that are struggling in this period of uncertainty.
In fact, this year alone the Government is injecting $21 billion of stimulus into the Canadian economy. As a share of the economy, this is significantly greater than the stimulus package offered by the U.S.
"Our Government is meeting the challenge of global economic uncertainty with a plan that is real, a plan that is responsible, a plan that is working," said Minister Flaherty. "In the weeks to come, Canadians will see $2.9 billion in retroactive personal tax relief that was announced in the fall. We didn't wait, we acted and Canadians can see the results."
Budget 2008 also provides the most important federally driven personal finance innovation since the introduction of the Registered Retirement Savings Plan (RRSP): the Tax-Free Savings Account. This flexible, registered, general-purpose account will allow Canadians to watch their savings-including interest income, dividend payments and capital gains-grow tax-free.
"The Tax-Free Savings Account is the first of its kind in Canadian history," said Minister Flaherty. "It will provide all Canadians with a powerful incentive to save. An RRSP is primarily intended for retirement, but the Tax-Free Savings Account is like an RRSP for everything else in your life."
Budget 2008 also demonstrates responsible leadership by:
- Reducing debt.
"We have come to a fork in the road," said Minister Flaherty. "Some would have us go down the path to higher spending, higher interest payments and higher taxes. That approach is misguided. Our Government is taking the path that requires focus, prudence and discipline."
Further information on Budget 2008 can be obtained by visiting the Department of Finance website or by phoning 1-800-O-Canada (1-800-622-6232) or 1-800-926-9105 (TTY for the speech and hearing impaired/deaf).
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