2014 budget: transitioning towards a budget surplus
Employment still at the forefront
On the eve of an election year, Finance Minister James M. Flaherty opted to stay the course towards a balanced budget in 2015, banking primarily on employment support to drive economic growth.
Thus, the Economic Action Plan 2014 tabled today does not include any new taxes on families and businesses and balancing the budget in 2014 will generally rely on freezing departmental operating expenses. The conservative government projects that the deficit will decline to $2.9 billion in 2014–2015, with a surplus of $6.4 billion expected in 2015-2016, after taking into account a $3 billion annual adjustment for risk.
More forceful measures to further support the competitiveness of Canada and its businesses will most likely be announced next year in a more favourable budget context.
The following pages provide an overview of the budget’s tax measures.