January 30, 2001

The year 2001 begins with Canadians enjoying an economy on its longest run of growth since the 1960s.

The unemployment rate now stands at 6.8% - its lowest level in nearly 24 years. Over 2 million new jobs have been created since the government took office in 1993 -- 1.3 million in the last three years alone.

The rock-solid foundation of these impressive economic fundamentals has been - and will remain - our unswerving commitment to prudent fiscal management.

We are better positioned than at any time in the past three decades to seize the opportunities of the new economy and weather any short term slowing of growth in our major trading partners.

A Record of Achievement

After inheriting a record $42 billion deficit in 1993-94, we have delivered our third straight balanced budget or better in 1999-2000.

Last year, we reduced the national debt by $12.3 billion - the largest pay-down in Canadian history. By the end of this year, we will have paid off $28.7 billion of our debt, freeing up about $1.7 billion to be reinvested every year in priority areas such as health and lifelong learning;

We have put the debt-to-GDP ratio on a permanent downward track. It is projected to fall to about 40% by 2005-06.

Our extraordinary fiscal turnaround has allowed us to introduce the largest tax cut in Canadian history - some $100 billion in cumulative tax relief by 2004-05.

But it is not such a large tax cut that it will impair our ability to deliver the essential services – such as health care - that Canadians rely on as part of our shared quality of life.

All Canadians will get a federal tax cut -- moderate and middle-income Canadians in particular. 52% of our tax cuts go to Canadians making $60,000 or less. Almost all of the cuts took effect on January 1^st .

By 2004-05, Canadians’ average personal income tax burden will be 21% less – and 27% less for families with children.

The capitals gains inclusion rate has been cut from two-thirds to one-half, rewarding entrepreneurship and innovation;

To encourage jobs and growth, we are accelerating the corporate tax cuts from 28% to 21%, with a one-point reduction in 2001 followed by a two-point cut in each of the next three years.

We increased the Canada Child Tax Benefit, the Disability Tax Credit and the Caregiver Credit; and we doubled the amount for the Education Credit for full and part-time students.

And we are providing one-time relief for heating expenses to low- and modest-income Canadians.