Budget 2001
The Big Picture

December 10, 2001

Today, the Government brought down Budget 2001 – a budget of balance and confidence that addresses pressing security concerns while carrying forward our long-term agenda for building a more prosperous and inclusive Canada.

Budget 2001 carries forward our long-standing commitment to sound fiscal and economic management. As a result, we are bringing down our fifth balanced budget or better in a row – a first in 50 years. And we are forecasting balanced budgets or better for the two following years through 2004.

It is worth noting that Canada will be the only G7 nation to balance its books this year.

In addition, thanks to our balanced budgets and our $36 billion payment on the national debt, the debt-to-GDP ratio – the measure of the size of the debt relative to the size of the economy – will fall below 50% next year for the first time in 17 years.

While balancing the books is a source of great pride for Canadians, we can all take very real satisfaction from the fact that we will do it while:

delivering a proportionately larger economic stimulus package than the U.S. – $26 billion this year in targeted spending and tax cuts, rising to $31 billion next year, to help us through these difficult times;

investing in the security needs of Canadians; and

continuing to make targeted investments that will ensure a better future for all Canadians.

Investing in our Collective Security

In total, Budget 2001 provides more than $7.7 billion over the next five years to enhance security for Canadians. More specifically, we are investing:

$6.5 billion for security, including the creation of a new air security authority, additional funding for intelligence and policing, and funding for Canada’s military;

more than $1.2 billion for initiatives designed to make Canada’s border more secure, open and efficient.

Making Strategic Investments

Our government’s fundamental goal and commitment is to build a strong economy, a secure society and improve the quality of life of all Canadians. Budget 2001 delivers on these commitments by making strategic investments that will make a difference now, and for the future.

Budget 2001 announces nearly $3 billion in targeted investments to support strategic infrastructure and the environment. It commits a minimum of $2 billion to the creation of the Strategic Infrastructure Foundation, confirms $680 million in funding for affordable housing and doubles funding for the Green Municipal Enabling Fund and the Green Municipal Investment Fund.

Budget 2001 confirms that the $23.4 billion agreement on health care and early childhood development is fully protected. This ensures that the federal contribution to health care is now and will remain at an all-time high.

Budget 2001 provides $95 million to the Canadian Institute for Health Information, and increases annual funding by $75 million for the Canadian Institutes of Health Research.

Budget 20001 invests more than $1.1 billion over three years to support skills, learning and research, including better support for people with disabilities who pursue higher education, helping universities offset indirect research costs, supporting leading-edge technology and extending funding for Internet initiatives.

Budget 2001 invest $185 million over the next two years to enhance and expand programs designed to help aboriginal children, such as Head Start, and reduce the incidence and effects of Fetal Alcohol Syndrome.

Budget 2001 increases Canada’s international assistance by $1 billion over three years. It commits $500 million to a fund promoting sustainable development in Africa and provides additional funds for Afghanistan and other international assistance projects.