Table of Contents

1. A Strong Economy and a Secure Society

Introduction

Maintaining Sound Economic and Financial Management

The Canadian Opportunities Strategy

Building a Secure Society

General Tax Relief for Canadians

Summary of Spending and Tax Actions

Outline of the Budget Plan

2. Economic Developments and Prospects:

The Policy Payoff

Introduction

Recent Economic Developments

The Payoff in Growth and Jobs

Issues and Prospects for the Outlook

Sustaining growth through a virtuous circle

Uncertainties in the outlook

The external environment

Private sector assessment of the economic

outlook for Canada

Prudent Assumptions for Fiscal Planning

3. Maintaining Sound Economic and

Financial Management

Introduction

Balancing the Books - The First Time Since 1969-70

The Debt Repayment Plan

Preserving the Gains from Low Inflation

Fiscal Outlook to 1999-2000

Overview

Changes since the 1997 budget forecast

Outlook for budgetary revenues

Outlook for program spending

Public debt charges

Financial surplus

4. The Canadian Opportunities Strategy

Introduction

The challenge

Acting on shared goals

Creating opportunities for Canadians

The Canadian Opportunities Strategy

Financial assistance for students

Support for advanced research and graduate students

Helping manage student debt

Helping Canadians upgrade their skills

Encouraging families to save for education

Supporting youth employment

Connecting Canadians to information

and knowledge

Conclusion

5. Building a Secure Society

Introduction

Improving Canada's Health Care System

Tobacco tax increase

Helping the self-employed with health

and dental insurance costs

A Sustainable Retirement Income System

The Canada Pension Plan

The Seniors Benefit

The Guaranteed Income Supplement

Alternative minimum tax and RRSPs

Support for Families

Building a National Child Benefit System

Helping families with child care expenses

Helping individuals caring for family members

Assistance for Persons with Disabilities

Strengthening Communities and the Voluntary Sector

Emergency service volunteers

Voluntary Sector Network Support

Rural Canada

Continuing support for

Northern Ontario communities

New Partnership with Aboriginal Peoples

Addressing Environmental Challenges

Promoting Canadian Culture and Sports

Tax assistance to the Canadian film industry

Canada Television and Cable Production Fund

Furthering International Co-operation

6. General Tax Relief for Canadians

Introduction

Personal Income Tax Relief: the First Steps

Increase in tax-free income for low-income Canadians

General surtax eliminated for most taxpayers

Reductions in Employment Insurance Premiums

Tax Fairness: Tackling the Underground Economy

Annexes

1. Spending and Tax Initiatives since the 1997

Budget

2. The Budgetary Balance, Financial Balance

and National Accounts Budget Balance

3. Improved Fiscal Outlook for the

Canadian Government Sector

4. Canada's Fiscal Progress in an International

Context

5. Fiscal Outlook: Sensitivity to Economic

Assumptions

6. The Government's Response to the

Auditor General's Observations on

the 1997 Financial Statements

7. Tax Measures: Supplementary Information

and Notices of Ways and Means Motions