The 2000 Budget: Continued Sound Economic and Financial Management

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 21^st 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