Federal Budget – a play-it-safe plan
Overall, the Federal Budget is a play-it-safe plan to reduce Canada’s deficit to $1.8 billion by 2014-15 from its current $53.8 billion level.
The OCC is concerned that spending restraint over the next five years is modest at best; a more aggressive plan to control spending over the next several years would have been welcomed given the severity of the record-level deficit; the reduction in spending will not begin until 2011 and beyond.
Government operating expenses have dramatically increased in the last three fiscal years. Although the OCC applauds the reduction in overall operating expenses between 2010/2011 and 2011/2012, there is concern expenses are set to return back to their current record high in 2014/2015, well after stimulus programs come to an end.
As it pertains to Ontario’s economic renewal and business competitiveness, there are a few modest improvements.
The OCC is pleased to see the elimination of the remaining tariffs on manufacturing inputs and machinery and equipment, totaling $1.3 billion. This measure will assist Canadian industry by lowering the costs of manufacturing inputs and machinery and equipment that are imported from outside North America.
Red tape continues to be one of the largest impediments to business growth, making the establishment of a Red Tape Commission a positive move. However, it comes with no concrete plans other to review ‘red tape’.
On the infrastructure front, there is good news for the Detroit River International Crossing partnership, with a much needed injection of $10 million over 3 years to support the legal, financial and technical work required to advance a new international crossing at Detroit-Windsor – the key lifeline to Ontario’s economy.
The OCC is pleased to see a continued commitment to Canada’s nuclear industry, with $300 million dedicated to AECL’s operations in 2010–11 to cover anticipated commercial losses and support the corporation’s operations, including the continued development of the Advanced CANDU Reactor.
You can find the budget documents at the following links:
The Canadian Chamber of Commerce analysis of Federal Budget 2010.
