Archives - Jean Chrétien

The 2000 Budget: Better Finances Better Lives

Budget 2000 - the first of the 21^st century - is the next step in our balanced and comprehensive plan to make Canada the place to be in the 21^st century.

With our economy strong, with hundred of thousands of jobs being created, with surpluses forecast for the foreseeable future, we are well positioned to make this happen - to translate better finances into a better quality life for all Canadians.

Budget 2000 moves us forward with a balanced approach, combining:

• Focused and targeted smart investments - in health care, knowledge and innovation, in families with children and the environment; 
• A Five-Year Tax Reduction Plan; and, 
• An unshakeable commitment to sound financial management and debt repayment.

A balanced approach that honours the 50:50 pledge made in our 1997 platform Securing Our Future Together.

Highlights

Budget 2000 invests an additional $2.5 billion over four years in health care and post-secondary education through the Canada Health and Social Transfer (CHST) - the 4^th consecutive increase we have made in the CHST.

Budget 2000 proposes a Five-Year Tax Reduction Plan that:

• Immediately restores full indexation to the personal income tax system to protect all taxpayers from so -called "bracket creep" or automatic tax increases caused by inflation.
• Reduces the middle income tax rate to 23% from 26%, starting with a two-point reduction to 24% as of July 2000; and,
• Lowers tax rates for businesses in high tech and growth sectors from 28% to 21% by 2004 - to ensure they can remain internationally competitive.

  Overall, our Five-Year Plan will deliver at least $58 billion in tax relief by 2004. It will lower personal income taxes by an average of at least 15% annually for all tax payers - by an average of at least 18% annually for low and middle-income Canadians - and by an average of at least 21% annually for families with children.

  Budget 2000 further enriches the Canada Child Tax Benefit (CCTB) by another $2.5 billion by 2004 - increasing it to more than $9 billion annually. Maximum benefits will reach $2,400 for a family's first child and $2,200 for each additional child.

  Budget 2000 doubles the duration of Employment Insurance maternity and parental benefits to 12 months - and makes them more flexible and easily accessible.

  Budget 2000 provides $900 million over five years to fund and sustain 2000 21st Century Chairs for Research Excellence at universities right across Canada.

  Budget 2000 increases the endowment of the Canada Foundation for Innovation by another $900 million - to $1.9 billion.

  Budget 2000 proposes a multi-year agreement by the end of 2000 with other levels of government and the private sector to improve highways, and municipal infrastructure - including green infrastructure and affordable housing - in urban and rural communities across the country.

  Budget 2000 proposes to invest $700 million to develop Environmental Technologies and Sustainable Practices.

  Budget 2000 announces our third straight balanced budget or better in 1999-2000, and projects balanced budgets or better for 2000-01 and 2001-02 - the first time in 50 years - and only the third time since Confederation - that a federal government has record balanced budgets for at least 5 years in a row.

   

Overall, our Five-Year Plan will deliver at least $58 billion in tax relief by 2004. It will lower personal income taxes by an average of at least 15% annually for all tax payers - by an average of at least 18% annually for low and middle-income Canadians - and by an average of at least 21% annually for families with children.

Budget 2000 further enriches the Canada Child Tax Benefit (CCTB) by another $2.5 billion by 2004 - increasing it to more than $9 billion annually. Maximum benefits will reach $2,400 for a family's first child and $2,200 for each additional child.

Budget 2000 doubles the duration of Employment Insurance maternity and parental benefits to 12 months - and makes them more flexible and easily accessible.

Budget 2000 provides $900 million over five years to fund and sustain 2000 21st Century Chairs for Research Excellence at universities right across Canada.

Budget 2000 increases the endowment of the Canada Foundation for Innovation by another $900 million - to $1.9 billion.

Budget 2000 proposes a multi-year agreement by the end of 2000 with other levels of government and the private sector to improve highways, and municipal infrastructure - including green infrastructure and affordable housing - in urban and rural communities across the country.

Budget 2000 proposes to invest $700 million to develop Environmental Technologies and Sustainable Practices.

Budget 2000 announces our third straight balanced budget or better in 1999-2000, and projects balanced budgets or better for 2000-01 and 2001-02 - the first time in 50 years - and only the third time since Confederation - that a federal government has record balanced budgets for at least 5 years in a row.

The 2000 Budget