Suvarna Garge (Editor)

2006 Canadian federal budget

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Presented
  
May 2, 2006

Parliament
  
39th

Finance minister
  
Jim Flaherty

Passed
  
June 6, 2006

Party
  
Conservative

Total revenue
  
C$236 billion

The Canadian federal budget for fiscal year 2006–2007 was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on May 2, 2006. Among the most notable elements of the federal budget were its reduction of the Goods and Services Tax by one percentage point, income tax cuts for middle-income earners, and $1,200-per-child childcare payment (the "Universal Child Care Benefit") for Canadian parents.

Prime Minister Stephen Harper called the bill a message of what Canadians should expect from his Conservative minority government. Many aspects of it were criticized by opposition parties. The Liberal Party and New Democratic Party indicated that they would not support the budget, while the Bloc Québécois indicated that it would vote in favour of it.

On June 6, 2006, the budget was introduced for third reading in the House of Commons. Amid an apparent mix-up, and confusion, no MPs rose to speak. Thus, the budget was declared passed by unanimous consent a week ahead of schedule.

Highlights

These initiatives are to be delivered in periods that vary from one to five years:

  • $1.1 billion for the Canadian Forces.
  • $2 billion in general spending cuts.
  • The creation of the Canada Employment Credit, a tax credit to be worth approximately $155 per employed Canadian by 2007.
  • $1 billion for emergency preparedness, specifically against a potential flu pandemic.
  • A decrease (in law) in the lowest income tax rate from 16% to 15.25% for 2006, and to 15.5% for subsequent years.
  • Increases to the amount that an individual can earn before paying personal income tax from about $8,300 to $10,000 by 2010.
  • A reduction of the general corporate income tax rate from 21% in 2007 to 19% in 2010, and elimination of the 3% corporate income surtax after 2006.
  • $160 million for hiring new police officers at the Royal Canadian Mounted Police.
  • $3 billion to reduce the government's debt.
  • No funding for the Kyoto Protocol
  • No funding for the Kelowna Accord
  • $150M in new taxes on income trusts

    • References

    2006 Canadian federal budget Wikipedia
    (Text) CC BY-SA