Federal Finance Minister Bill Morneau delivers budget speech in the House of Commons Tuesday.

Opposition blasts Liberal borrowing, spending

Borrowing to cover tax cuts, extra EI spending and more grants for transit and other infrastructure

  • Mar. 22, 2016 7:00 a.m.

Federal Finance Minister Bill Morneau has handed down his first budget with a massive deficit of $29.4 billion – three times what had been promised during the election campaign – as the new Liberal government embarks on a stimulus program.

The budget forecasts more than $100 billion in deficits for the next five years, contrary to Prime Minister Justin Trudeau’s election promise to balance the budget in four years. Morneau billed the budget as a plan to “revitalize the Canadian economy” and deliver a tax break to nine million taxpayers, and a more generous, tax-free child benefit.

Conservative leader Rona Ambrose said the finance ministry reported on budget day that the Liberals inherited a $4 billion surplus.

“There was still a surplus in January, and they’ve blown through that in the first 100 days,” Ambrose said. “What we’re seeing now is reckless spending without a job creation plan, and no actual plan in the budget to return to a balance.”

NDP leader Thomas Mulcair took aim at Morneau’s plan to target additional Employment Insurance coverage to areas of the country hit hard by the slump in oil and commodity prices.

“Right now there are 850,000 people who have lost their jobs who are not even eligible for EI,” Mulcair said. “The budget only takes care of 50,000 of them.”

Metro Vancouver mayors hoping for big infrastructure grants for rapid transit expansion may be disappointed that much of the future stimulus money will be back-end loaded in a second phase of grants after the next federal election.

A $370-million initial investment for Metro Vancouver transit is included and will assist TransLink in improving bus service and SkyTrain across the region.

The budget also indicates Ottawa can contribute up to 50 per cent of future capital funding, instead of the one-third from each senior government that was the practice in the past.

Big ticket items in the budget include the reduction of middle class tax rates – from 22 to 20.5 per cent for the $45,000 to $90,000 income bracket. Only part of that is offset by an increase in the tax rate for income over $200,000 from 29 to 33 per cent.

The budget also includes $8.4 billion for aboriginal communities.

 

Just Posted

Rebuilding plan seeks funding for Langley Lions housing

The Birch building could be torn down and rebuilt larger than before.

Glow festivities in Langley expand to include fall show

Langley nursery transforms greenhouses for a new fall festival of lights, pumpkins, and family fun.

BMX racing takes Langley barista to World Cup in Argentina

Drew Mechielsen encourages other girls to get involved in riding, whether competitive or not.

Apple heritage celebrated with Langley’s heritage apples

An annual party, in which families pay homage to the fruit, is on tap for Saturday at Derby Reach.

Fort Langley to hold all-candidates meeting

A forum in the village includes Township of Langley school trustee, council, and mayoral candidates.

VIDEO: More cameras, police coming after Marissa Shen killed in Burnaby park

B.C. privacy watchdog worries that the cameras are a ‘slow creep’ to a surveillance state

Tempering the B.C. cannabis legalization ‘gold rush’

Retail selling of marijuana offers potential business opportunities and pitfalls

B.C. cancer patient’s case exposes gaps in care for homeless people: advocates

Terry Willis says he’s praying for a clean, safe place to live to undergo the cancer treatments he needs after he was denied chemotherapy because he lives in a Victoria homeless shelter.

Trump boasts of America’s might, gets laugh at UN

President Donald Trump received an unexpected laugh at the United Nations General Assembly on Tuesday.

Federal use of A.I. in visa applications could breach human rights, report says

Impacts of automated decision-making involving immigration applications and how errors and assumptions could lead to “life-and-death ramifications”

Arborist killed by fallen tree at Maple Ridge Golf Course

Was working near the 9th tee box of the golf course.

Rattie scores 3 as Oilers blank Canucks 6-0

Vancouver slips to 1-5 in exhibition play

Veterans Affairs ordered to take second look before supporting vets’ relatives

Liberal government ordered officials to adopt a more critical eye

Dead B.C. motorcyclist was member of group that raced down mountain road

Some group members record their rides on Strathcona Parkway and post times to page

Most Read