The Canadian federal budget for the 2009-2010 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on January 27, 2009. The federal budget included $40 billion in stimulus and $20 billion in personal income tax cuts.
The Budget Implementation Act, 2009 was introduced in the House of Commons on February 6, 2009, and it received royal assent on March 12, 2009, enacting the legislative changes necessary to implement the budget. It was announced as the "Budget 2009: Economic Action Plan", with accompanying publicity.
Some of the key items in the Economic Action Plan budget were:
$12 billion in new infrastructure stimulus funding for roads, bridges, broadband internet access, electronic health records, laboratories and border crossings across the country.
$20 billion in personal income tax relief
$7.8 billion to build quality housing, stimulate construction and enhance energy efficiency.
Increasing the basic personal amount that all Canadians can earn without paying federal income tax.
Raising the upper limit of the two lowest personal income tax brackets by 7.5 per cent so that Canadians can earn more at lower tax rates.
Increasing the amount that low- and middle-income families can earn before their federal child benefits are phased out.
Investing $580 million to effectively double the tax relief provided by the Working Income Tax Benefit.
Providing tax savings of up to $150 a year for seniors by increasing the Age Credit amount by $1,000.
The temporary Home Renovation Tax Credit of up to $1,350 for eligible home renovations and alterations.
An increase to the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000 to help Canadians buy a first home.
A new First-Time Home Buyers’ Tax Credit that will provide up to $750 in tax relief when purchasing a first home.
$300 million over two years to the ecoENERGY Retrofit program.
$1 billion over two years for renovation and energy retrofits to social housing.
$400 million over two years to build housing for low-income seniors.
$75 million over two years to build social housing for persons with disabilities.
$200 million over two years to support social housing in the North.
$2 billion over two years in low-cost loans to municipalities to improve housing-related infrastructure.
$1 billion over five years for a green infrastructure fund.
Up to $500 million over the next two years to accelerate infrastructure projects in small communities.
$1 billion over two years to expedite new "ready-to-go" provincial, territorial and municipal projects.
$4 billion over two years to restore aging infrastructure.
$500 million over two years to Recreational Infrastructure Canada (RInC) to build and renew community recreational facilities.
$2 billion for repair, maintenance and construction of post-secondary institutions.
$750 million to the Canada Foundation for Innovation to support leading-edge research infrastructure.
$50 million to the Institute for Quantum Computing for a new research facility.
$250 million over two years for deferred maintenance at federal laboratories.
$500 million to Canada Health Infoway for electronic health records.
$225 million over three years to extend broadband coverage to unserved communities.
$407 million for improvements to Via Rail service.
$72 million over five years to improve railway safety.
$130 million to Parks Canada for Trans-Canada Highway twinning.
$150 million for visitor improvements and upgrades to Parks Canada.
$212 million to renew the Champlain Bridge in Montreal.
$57 million for the renewal of other key federal bridges across Canada.
$80 million over three years to expand and modernize border service facilities.
$217 million for core commercial fishing harbours across Canada.
$323 million over two years to restore federal buildings.
$87 million over two years for key Arctic research facilities.
$20 million in each of two years to improve the accessibility of federally owned buildings for persons with disabilities.
$296 million to enhance air passenger security.
$1 billion for clean energy research, development and demonstration projects.
$110 million over three years for space robotics research and development.
$81 million over two years to accelerate the cleanup of federal contaminated sites.
$1 billion for green infrastructure projects.
$1 billion over two years for renovation and energy retrofits to social housing.
$300 million over two years to the ecoENERGY Retrofit program.
$1 billion for clean energy research, development and demonstration projects.
$87 million over two years for key Arctic research facilities.
$245 million over two years for the cleanup of federal contaminated sites.
$10 million to improve government environmental reporting.
A 14-week extension of work-sharing agreements to a one-year maximum.
$50 million over two years to cover severance pay owed to eligible employees of bankrupt companies.
A five-week extension to all regular Employment Insurance (EI) benefits for two years.
Continued low EI premium rates of $1.73 for 2009 and 2010, providing relief of $4.5 billion over two years.
$500 million to extend EI benefits for workers in longer-term training.
$1.5 billion over two years for EI and non-EI training programs.
$55 million over two years for youth employment.
$60 million over three years for the Targeted Initiative for Older Workers.
$40 million a year to launch the $2,000 Apprenticeship Completion Grant.
$87.5 million over three years to expand the Canada Graduate Scholarships program.
$50 million for the Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications.
An additional $50 billion for the Insured Mortgage Purchase Program, increasing its size to $125 billion.
$13 billion to increase the lending of Crown corporations, of which $5 billion will be delivered through the new Business Credit Availability Program.
$12 billion for a Canadian Secured Credit Facility to support financing of vehicles and equipment.
An increase in the loan limit for small businesses under the Canada Small Business Financing Program.
A two-year, 100-per-cent capital cost allowance (CCA) rate for investment in computers.
A two-year extension of the temporary 50-per-cent straight-line accelerated CCA rate to investment in manufacturing or processing machinery and equipment undertaken in 2010 and 2011.
Over $440 million in savings for Canadian industry over the next five years by eliminating tariffs on a range of machinery and equipment.
$170 million over two years to support innovation and marketing for the forestry sector.
$500 million over five years to facilitate new agricultural initiatives.
$50 million over three years to strengthen slaughterhouse capacity.
$175 million to buy new coast guard vessels and refurbish aging vessels.
Over $335 million over two years for cultural and arts programs, including television, print media, museums, libraries and local theatres.
$40 million over two years for tourism marketing activities.
$50 million per year for marquee festivals and other tourist events.
An increase to $500,000 in the amount of small business income eligible for the reduced federal tax rate of 11 per cent.
$30 million over two years for the Canada Business Network.
$200 million over two years to support industrial research for small and medium-size businesses.
More than $1 billion over five years for a Southern Ontario development agency to support economic development in Southern and Eastern Ontario.
$1 billion over two years for a Community Adjustment Fund (CAF) to lessen the impact of economic adjustment.
$50 million for a new regional agency, and economic development in the North.
A one-year extension of the temporary 15-per-cent mineral exploration tax credit.
$515 million over two years to accelerate "ready-to-go" First Nations projects in three priority areas: schools, water, and critical community services.
$400 million over two years for social housing for First Nations on reserves.
$100 million over three years in the Aboriginal Skills and Employment Partnership.
$75 million in a two-year Aboriginal Skills and Training Strategic Investment Fund.
$305 million over two years to improve health outcomes for First Nations and Inuit people.
$20 million over two years to improve child and family services on reserves.
Opposition and approval
The NDP, and Bloc announced shortly following the presentation of the budget that they would not support it in its initial form, but the budget was passed on February 3, 2009, with the support of the Liberals after the government agreed to support a Liberal amendment to the budget motion calling for regular reports to parliament on the implementation and costs of the budget. All MPs for the NDP and the Bloc and the six Liberal members from Newfoundland and Labrador voted against the budget.
