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.
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