The 2000 Economic Statement and Budget Update
The Big Picture

October 18, 2000

Canada is well-positioned for outstanding success in the 21st century. Our economy is very strong and we want to ensure that all Canadians – moderate and middle-income Canadians in particular - reap the benefits of our renewed economic strength with a higher quality of life.

The 2000 Economic Statement and Budget Update outlines the next steps in the balanced plan to ensure that all Canadians have every opportunity to succeed in the new economy of the 21st century.

It is a smart, focused plan that strikes the right balance in terms of paying down debt, cutting taxes fairly, investing in research and innovation and enhancing our quality of life

The 2000 Economic Statement and Budget Update advances our plan on four fronts:

Enhancing our Quality of life

The 2000 Economic Statement and Budget Update reaffirms our unanimous agreement with the provinces and territories on a new Health Action Plan, that will see $21.2 billion in new investments by the government over the next 5 years to renew health care.

The 2000 Economic Statement and Budget Update reaffirms the $2.2 billion that the government will invest over the next 5 years in early childhood development – to ensure that all Canadian children get the good start they need in life

The 2000 Economic Statement and Budget Update provides an additional $500 million in investments to combat climate change and air pollution.

Strengthening Education, Research and Innovation

The 2000 Economic Statement and Budget Update doubles the amount on which the Education Tax Credit is based to $400 per month for full-time students, and to $120 per month for part–time students. This will provide almost $1billion to over 1 million students in the next four years. To help them offset the cost of books, lodging and other expenses.

The 2000 Economic Statement and Budget Update features $500 million in new resources for the Canada Foundation for Innovation – increasing the Government of Canada's investment in the agency to $2.4 billion.

Debt Repayment

The 2000 Economic Statement and Budget Update announced this fiscal year, that the government is committed to paying off at least $10 billion of the public debt.

With a renewed Debt Repayment Plan and continued vigour in the Canadian economy, our debt-to-GDP ratio will fall to 40% by 2005-06.

Substantial and Fair Tax Cuts – for moderate and middle-income Canadians in particular

The combined tax measures outlined in the Update and Budget 2000 deliver the largest tax cut in Canadian history – some $100 billion in cumulative tax relief by 2004-05.

But not so large a tax cut that it will impair our capacity to fund those essential core services on which moderate and middle-income families rely – such as health care and education

52% of our tax relief goes to Canadians making $60,000 or less.

And we are moving fast – implementing the majority of our tax cuts on January 1st, 2001 – less than two-and-a-half months from now.

In early 2001, the government will also provide one-time relief from heating expenses to help low and modest-income Canadians.