Budget Plan, Annex 1 (Budget 2001)


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Budget 2001 - Budget Plan
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Annex 1
Spending and Tax Relief Since the 1997 Budget

The following tables present the fiscal impact of spending and tax relief initiatives since 1997-98 – the first year a budgetary surplus was recorded. They show the various initiatives undertaken in the 1998, 1999 and 2000 budgets, the 2000 Economic Statement and Budget Update, and the 2001 budget, as well as cumulative totals.

Table A1.1
Spending and Revenue Initiatives: 2001 Budget

	2001- 2002	2002- 2003	2003- 2004


	(millions of dollars)
Spending initiatives
Improving the quality of life for Canadians and their children
Health initiatives	182	181	173
Employment insurance benefits	35	89	89
New partnerships with Aboriginal peoples	19	123	125
Crime prevention	53	62	75
Cultural initiatives	305	395	196
International assistance	240	37	311
Total	834	887	969
Making Canada’s economy more competitive
Investing in skills, learning and research	549	318	318
Strategic infrastructure and the environment	284	225	278
Total	833	543	596
Providing essential public services
Security	1,067	1,217	1,236
Maintaining a secure, open and efficient border	72	307	260
Departmental operations	752	464	318
Total	1,891	1,997	1,814
Total spending initiatives	3,558	3,427	3,377
Tax expenditures and general tax/ revenue actions
Improving the quality of life for Canadians and their children
Donations of certain publicly traded securities to charities		70	70
Tobacco tax increases	-275	-440	-440
Total	-275	-370	-370
Making Canada’s economy more innovative	10	40	60
Revenue and cost recovery measures
Deferral of corporate income tax instalments for small businesses	2,000	-2,000
Air Travellers Security Charge		-430	-445
Other cost recovery		-50	-50
Total	2,000	-2,480	-495
Tax expenditures and general tax/ revenue actions	1,735	-2,820	-805
Total spending and tax/revenue initiatives	5,297	607	2,572

Table A1.2
Spending and Tax Initiatives: 2000 Economic Statement

	2000- 2001	2001- 2002	2002- 2003	2003- 2004


	(millions of dollars)
Spending initiatives
Improving the quality of life for Canadians and their children
Canada Health and Social Transfer		2,800	3,600	4,300
Other health initiatives	1,500	200	200	200
Employment insurance (EI) benefits	200	450	500	500
Relief for Heating Expenses	1,345
Total	3,045	3,450	4,300	5,000
Making Canada’s economy more competitive
Canada Foundation for Innovation	500
Social Sciences and Humanities
Research Council		20	20	20
Clean environment		100	100	100
Total	500	120	120	120
Total spending initiatives	3,545	3,570	4,420	5,120
Tax expenditures and general tax actions
Improving the quality of life for Canadians and their children
Canada Child Tax Benefit		260	355	355
Caregiver credit/disabilities	25	100	110	110
Total	25	360	465	465
Making Canada’s economy more competitive
Education tax credit	10	225	230	240
Capital gains inclusion rate	20	175	485	715
Flow-through shares	5	35	40	50
Total	35	435	755	1,005
General tax relief and fairness measures
Personal income tax relief	1,395	5,745	6,380	6,185
Corporate income tax reductions		160	1,140	1,790
Reduction in EI premium rates¹	100	300
Total	1,495	6,205	7,520	7,975
Tax relief	1,555	7,000	8,740	9,445
Total	5,100	10,570	13,160	14,565

¹ Assumes employee premium rate of $2.25 for 2001, $2.20 for 2002 and $2.10 for 2003.

Table A1.3
Spending and Tax Initiatives: February 2000 Budget

	1999- 2000	2000- 2001	2001- 2002	2002- 2003	2003- 2004


	(millions of dollars)
Spending initiatives
Improving the quality of life for Canadians and their children
Canada Health and Social Transfer¹	2,500
Support for families with children			607	965	950
Opportunities for Canadians with disabilities		33	37	32	30
Assisting the homeless	63	235	220	220	16
Total	2,563	268	863	1,217	996
Making the economy more competitive
Investing in research and innovation
Canada Foundation for Innovation	900
Genome Canada	160
Other	35	208	278	268	328
Total	1,095	208	278	268	328
Promoting environmental technologies and practices	235	148	143	159	170
Strengthening federal, provincial and municipal infrastructure		300	550	750	750
Total	1,330	656	971	1,177	1,248
Providing essential public services
Defence	634	546	550	600	650
Economic adjustment	661	511	500
Furthering international co-operation	175	110	155	200	155
Operating and capital	505	1000	834	760	752
Total	1,974	2,167	2,039	1,560	1,557
Total spending initiatives	5,867	3,091	3,873	3,953	3,801
Tax expenditures and general tax actions
Improving the quality of life for Canadians and their children
Canada Child Tax Benefit		475	1,020	1,350	1,665
Making the economy more competitive
Capital gains inclusion rate		15	135	230	230
Rollover of capital gains		20	75	75	75
Taxation of gains on qualifying stock options		10	75	75	75
Total		45	285	380	380
General tax relief and fairness measures
Personal income tax relief		2,790	4,385	5,615	6,790
Corporate income tax reductions		-65	250	310	325
Fairness measures	-25	-55	-30	-25	-25
Reduction in EI premium rates²	345	1,392	2,174	2,980	3,780
Total	320	4,062	6,779	8,880	10,870
Total tax initiatives	320	4,582	8,084	10,610	12,915
Total spending and tax initiatives	6,186	7,672	11,957	14,563	16,715

¹ The 1999-2000 CHST cash supplement was paid into a third-party trust in 2000-01, on passage of authorizing legislation. ² Assumes a 10-cent-per-year reduction in employee premium rates for 2001, 2002 and 2003.

Table A1.4
Spending and Tax Initiatives: February 1999 Budget


	1998- 1999	1999- 2000	2000- 2001	2001- 2002	2002- 2003	2003- 2004

	(millions of dollars)
Building a secure society
Strengthening health care for Canadians
Canada Health and Social Transfer¹	3,500		1,000	2,000	2,500	2,500
Other health care initiatives
Improving health information systems	95	28	85	120	120	120
Promoting health- related research and innovation²	160	50	115	225	225	225
First Nations health services		20	60	110	110	110
Preventive and other health initiatives		49	104	134	134	134
Total	255	147	364	589	589	589
New partnerships with Aboriginal peoples		49	144	159	159	159
Crime prevention	13	95	128	159	159	159
Furthering international co-operation	187	55	80	80	80	80
Addressing environmental challenges	12	18	17	17	17	17
Other
Equalization – technical improvements		48	97	145	194	225
Official languages in education		70	70	70	70	70
Parks Canada	35
Compensation and benefit issues in the military		175	175	175	175	175
Total	4,002	657	2,075	3,394	3,943	3,974
Building a strong economy
Building on the Canadian
Opportunities Strategy
Creating knowledge
Canada Foundation for Innovation²	100
Support for advanced research	16	50	55	55	55	55
Disseminating knowledge		27	42	27	27	27
Commercializing knowledge		121	232	317	317	317
Supporting employment		265	265	265	265	265
Total	116	463	594	664	664	664
Economic adjustment
Canadian Fisheries Adjustment and Restructuring Program	600	355	116	48
Agriculture Income Disaster Assistance Program	600	285	15
DEVCO	41	5	21	21	21
Total	1,241	645	152	69	21
Total: building a strong economy	1,357	1,108	746	733	685	664
Total spending initiatives	5,359	1,765	2,821	4,127	4,628	4,638
Tax expenditures and general tax actions
Building a secure society
Increase in Canada Child Tax Benefit			225	300	300	300
General tax relief and fairness measures
Extension of $500 supplement to all taxpayers		665	1,110	1,290	1,499	1,742
Increase in tax-free income by $175		270	450	525	613	715
Elimination of 3% surtax		595	995	1,150	1,329	1,536
Tax fairness measures		15	25	100	100	100
Reduction in 1999 EI premiums	300	1,250	1,250	1,250	1,250	1,250
Total	300	2,795	3,830	4,315	4,791	5,343
Total	300	2,795	4,055	4,615	5,091	5,643
Total spending and tax initiatives	5,659	4,560	6,876	8,742	9,718	10,281

¹ CHST supplement in 1998-99 was paid to a third-party trust in 1999-2000² An additional $200 million is being allocated to the Canada Foundation for Innovation. It is expected that about half will be used to improve infrastructure for health research.

Table A1.5
Spending and Tax Initiatives: February 1998 Budget

	1997- 1998	1998- 1999	1999- 2000	2000- 2001	2001- 2002	2002- 2003	2003- 2004


	(millions of dollars)
Canadian Opportunities Strategy
Canada Millennium Scholarship Foundation	2,500
Canada Study Grants		100	103	57	120	120	120
Increased funding for granting councils		120	135	150	150	150	150
Canada Student Loans Program		50	145	150	158	158	158
Canada Education Savings Grant		267	334	434	499	500	500
Connecting Canadians to information and skills	55	60	70	75	75	75	75
Supporting youth employment		50	75	100	100	100	100
Total	2,555	647	862	965	1,102	1,103	1,103
Building a secure society
Increase in CHST cash floor	200	900	1,500	1,500	1,400	1,200	1,000
Other health initiatives
National AIDS Strategy		41	41	41	41	41	41
Canadian Breast Cancer Initiative		7	7	7	7	7	7
Sustaining Canada’s blood system		55	55	25	25	25	25
Hepatitis C	800
Tobacco Demand Reduction Strategy		10	10	10	10	10	10
Total	800	113	113	83	83	83	83
Total	1,000	1,013	1,613	1,583	1,483	1,283	1,083
Support for families
Increased funding for employability
Assistance for persons with disabilities		15	20	20	20	20	20
New partnership with Aboriginal people	350	126	126	126	126	126	126
Promoting Canadian culture and sports	43	103	153	153	153	153	153
Strengthening communities		42	67	67	67	67	67
Environmental efficiency and innovation		94	94	94	94	94	94
Furthering international co-operation	90	70	20	20	20	20	20
Total	483	435	460	460	460	460	460
Total spending initiatives	4,038	2,110	2,955	3,028	3,065	2,866	2,666
Tax expenditures and general tax actions
Canadian Opportunities Strategy
Credit for interest on student loans		80	130	145	155	165	165
Lifelong learning (RRSPs)		15	40	45	50	55	55
Part-time education tax credit (includes part-time CCED)		25	90	90	90	90	90
EI premium holiday for youth			100	100
Total		120	360	380	295	310	310
Building a secure society
Deductibility of health/dental insurance premiums			90	110	125	125	125
Caregiver credit		30	120	125	130	130	130
Canada Child Tax Benefit			320	750	850	850	850
Child care expense deduction		20	45	45	45	45	45
Disability measures		5	5	5	5	5	5
Alternative minimum tax and RRSPs		70	20	20	20	20	20
Emergency services		5	10	10	10	10	10
Total		130	610	1,065	1,185	1,185	1,185
General tax relief and fairness measures
Eliminate surtax for taxpayers up to $50,000		710	1,175	1,365	1,430	1,498	1,498
Tax relief for low- income taxpayers		170	270	315	330	346	346
Reduction in EI premiums	235	725	725	725	725	725	725
Tax fairness measures		-5	-25	30	35	41	41
Total	235	1,600	2,145	2,435	2,520	2,610	2,610
Total targeted and general tax actions	235	1,850	3,115	3,880	4,000	4,105	4,105
Total spending and tax actions	4,273	3,960	6,070	6,908	7,065	6,971	6,771

Table A1.6
Summary of Spending and Tax Actions Since 1997 Budget

	1997- 1998	1998- 1999	1999- 2000	2000- 2001	2001- 2002	2002- 2003	2003- 2004	Cumulative total


	(millions of dollars)
Spending initiatives
Building a secure society
Strengthening health care for Canadians
Canada Health and Social Transfer	200	4,400	4,000	2,500	6,200	7,300	8,000	32,600
Other health initiatives	800	368	260	1,947	872	872	872	5,989
Other	483	697	1,054	3,003	3,431	3,484	3,566	15,718
Total	1,483	5,465	5,313	7,450	10,503	11,656	12,438	54,307
Building a strong economy
Canadian Opportunities Strategy	2,555	763	2,829	3,069	4,150	3,860	3,913	21,139
Economic adjustment		1,241	645	152	69	21	21	2,149
Total	2,555	2,004	3,474	3,221	4,219	3,881	3,934	23,288
Providing essential public services			1,974	2,167	3,930	4,027	3,853	15,950
Total spending initiatives	4,038	7,469	10,761	12,837	18,651	19,563	20,224	93,545
Tax expenditures and general tax relief
Canadian Opportunities Strategy		120	360	460	1,025	1,055	1,075	4,095
Building a secure society
Canada Child Tax Benefit			320	1,450	2,430	2,855	2,855	9,910
Other		130	290	340	160	65	65	1,050
General tax relief		880	2,975	8,355	17,265	16,730	20,927	67,132
Tax fairness measures		-5	-35	0	105	-362	-380	-678
EI premium reductions	235	1,025	2,320	3,467	4,449	4,955	4,955	21,405
Total	235	2,150	6,230	14,072	25,434	25,295	29,497	102,913
Total spending and tax initiatives	4,273	9,619	16,991	26,909	44,086	44,858	49,722	196,458

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		Last Updated: 2001-12-10			Important Notices

Annex 1 Spending and Tax Relief Since the 1997 Budget

Annex 1
Spending and Tax Relief Since the 1997 Budget