The 2000 Budget: Continued Sound Economic and Financial
Management
February 28, 2000
Budget 2000 carries forward our record of sound financial management - a
record through seven budgets that - thanks to the support and discipline of
Canadians - has seen a remarkable economic and financial turnaround in Canada.
A record that has positioned Canada to be a leader in the emerging global,
knowledge-based economy. A record that is the rock solid foundation of our
balanced and comprehensive plan to make Canada the place to be in the 21st
century.
Keeping to the 50:50 Commitment
The 50:50 formula outlined in our 1997 campaign platform Securing Our Future
Together is being honoured.
For the period 1997-98 to 2002-03, cumulative planned investments, tax relief
and debt reduction break down as follows:
-
Total Investments:
$55.2 billion 46.3%
-
Total Tax Relief and Debt Reduction:
$64.0 billion 53.7%
A Strong Economy
Our economy is among the strongest in the G-7 - with real GDP growth for 1999
that is expected to come in at 3.8%. And it is forecast to have the second
strongest growth in the G-7 in 2000.
427,000 new jobs were created in 1999 and the unemployment rate fell to 6.8%
- its lowest level in almost a quarter century. Nearly 1.9 million jobs have
been created since we first took office in October 1993.
With the growing strength of our economy real, disposable incomes grew for
the third straight year in 1999 - and they have risen by almost 3% per capita
since 1996.
Continued Sound Financial Management
After having inherited a record $42 billion deficit, Budget 2000 announces
our third straight balanced budget or better in 1999-2000 - and projects
balanced budgets or better for 2000-01 and 2000-02.
This marks the first time in 50 years - and only the third time since
Confederation - that a federal government has recorded balanced budgets for at
least 5 years in a row. Federal spending as a percentage of GDP is at its lowest
level in 50 years.
And even factoring in the tax relief and investment measures outlined in
Budget 2000, program spending next year will be $4 billion lower than it was in
1993-94.
Thanks to continued strong economic growth and our Debt Repayment Plan, the
debt-to-GDP Ratio remains on a permanent downward track.
It will fall to 61% in 1999-2000 - down from its peak of 71.2% in 1995-96 -
to 55% by 2001-02 and to below 50% by 2004-05.
We will continue to follow our prudent and transparent approach to budget
planning.
In accordance with our Debt Repayment Plan we will continue to use the
Contingency Reserve Fund to reduce the debt when it is not needed.
The 2000 Budget
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