STRONG

LEADERSHIP

A BALANCED-BUDGET, LOW-TAX PLAN FOR

JOBS, GROWTH AND SECURITY

ECONOMIC ACTION PLAN 2015

THE BUDGET IN BRIEF

The Honourable Joe Oliver, P.C., M.P.

Minister of Finance
APRIL 21, 2015

The Budget in Brief 2015

The Government is fulfilling its promise to balance the budget in 2015, pursuant to
its long-standing commitment to responsible fiscal management. Economic Action
Plan 2015 will see the budget balanced and Canadians can rest assured that
Canadas fiscal house is in order.
Under the Governments Economic Action Plan, the deficit has been reduced from
$55.6 billion at the height of the global economic and financial crisis to a projected
surplus of $1.4 billion for 201516 (Chart 1.1).

The Government has eliminated the deficit

Chart 1.1
Budgetary Balance After Measures
billions of dollars

6
4.8

4
2

1.4

2.6

2.6

20172018

20182019

1.7

0
-2

-2.0

-4
-6

-5.2

20132014

20142015

20152016

20162017

20192020

Sources: Public Accounts of Canada; Department of Finance.

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Strong Leadership: A Balanced-Budget,

Low-Tax Plan for Jobs, Growth and Security

Canadas Economic Action Plan has been underpinned by prudent fiscal

management and the Governments low-tax plan for families and businesses.
Since 2006, the Governments priorities have been to create well-paying and secure
jobs for Canadians, lower taxes for Canadian families and businesses, and balance
the budget.
This Government has lowered taxes every year since coming into office. In fact,
since 2006 the Government has introduced over 180 tax relief measures. The overall
federal tax burden is now at its lowest level in more than 50 years.
Canadian families and individuals have benefitted from significant tax reductions
that have given them the flexibility to make the choices that are right for them.
Canadians at all income levels are benefitting from the tax relief introduced by the
Government, with low- and middle-income Canadians receiving proportionally
greater relief (Chart 1.2).

The impact of the Governments low-tax plan

Chart 1.2
Per Cent Reduction in Personal Income Taxes as a Result
of Tax Relief Provided Since 2006 by Family Income, 2015
per cent

100
90
80
70
60
50
40
30
20
10
0

Under
30,000

30,00045,000

45,00060,000

60,00080,000

80,000- 100,000- 150,000Over

100,000 150,000 250,000 250,000

family income (dollars)

Notes: Tax paid equals federal personal income tax payable for 2015 in the absence of tax relief provided since 2006. Tax relief
provided since 2006 excludes increases in benefits.
Source: Department of Finance.

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The Budget in Brief 2015

Tax relief measures introduced since 2006, in combination with benefit increases,
are leaving more money in the pockets of all Canadians:

Canadian families and individuals will receive $37 billion in tax relief and
increased benefits in 201516 as a result of actions taken since 2006.

A typical two-earner family of four will receive tax relief and increased benefits of
up to $6,600 in 2015, as a result of the Family Tax Cut, the Universal Child Care
Benefit, the Goods and Services Tax (GST) rate reduction, the introduction of new
credits, such as the Childrens Fitness Tax Credit, and broad-based income tax relief
including the reduction in the lowest personal income tax rate (Chart 1.3).

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Strong Leadership: A Balanced-Budget,

Low-Tax Plan for Jobs, Growth and Security

Tax Relief for a Family of FourExample

Henry and Cathy are a couple with two children, Grace and Elizabeth. Henry earns $84,000
and Cathy earns $36,000. As a result of actions taken by the Government since 2006, their
family will receive $6,640 in tax relief and enhanced benefits in 2015, allowing Henry and
Cathy to invest their hard-earned money where they see fit.
As shown below, this tax relief and these enhanced benefits include:
$3,293 in income tax relief, of which $1,865 is due to measures announced in the 2014
Family Package;
$2,329 in enhanced benefits, including $1,224 as a result of the enhanced Universal
Child Care Benefit announced in the 2014 Family Package; and
$1,018 from the Governments reduction of the GST rate from 7 per cent to 5 per cent.

The Impact of the Governments Low-Tax Plan

Chart 1.3
Total Federal Tax Relief and Increased Benefits for a Typical Two-Earner
Family of Four, 2015
Total Federal Tax Relief and Increased Benefits = $6,640

GST relief
$1,018

Child benefit
increases
$2,329

Personal income
tax relief
$3,293

Source: Department of Finance.

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The Budget in Brief 2015

The Governments low-tax plan is also giving businesses strong incentives to invest
in Canada. This helps the economy grow, spurs job creation and raises Canadas
standard of living. Actions taken by the Government since 2006, including those
proposed in Economic Action Plan 2015, will reduce taxes for job-creating
businesses by $14.7 billion in 201516. Canada now has the lowest overall tax rate
on new business investment in the Group of Seven (G-7) (Chart 1.4).

Canada leads the G-7 with the lowest overall tax rate
on new business investment
Chart 1.4
1
Marginal Effective Tax Rate on New Business Investment, 2015
per cent

40
35

Impact of federal and provincial

actions since Budget 2006

33.0

37.3
34.7

30

31.2

25

26.5

20
15

17.5

19.0

28.6

20.2

10
5
0

Canada

Italy

OECD Germany United

average
Kingdom

France

United
States

Japan

The marginal effective tax rate (METR) on new business investment takes into account federal, provincial and territorial statutory
corporate income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations,
including capital taxes and retail sales taxes on business inputs. The methodology for calculating METRs is described in the
2005 edition of Tax Expenditures and Evaluations (Department of Finance). The METR includes measures announced as of
January 1, 2015 that will be in effect on December 31, 2015. It excludes the resource and financial sectors and tax provisions
related to research and development.

OECD (Organisation for Economic Co-operation and Development) average excludes Canada.

Source: Department of Finance.

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Strong Leadership: A Balanced-Budget,

Low-Tax Plan for Jobs, Growth and Security

Canadas Economic Action Plan is working. Canada continues to move forward in

the face of a fragile external environment and profound global economic uncertainty.
Canada has achieved one of the best economic performances among G-7 countries
over the recovery. Indeed, real gross domestic product (GDP) has increased more in
Canada than in any other G-7 country since the end of the recession (Chart 1.5).

Canada has performed better than other G-7 economies

over the recovery
Chart 1.5
Real GDP Growth Over the Recovery
per cent

18
16

15.6
13.5

14

11.6

12

10.3

10

9.1

8
5.7

6
4
2
0
-2
-4

-2.3

Canada

United
States

Germany

United
Kingdom

Japan

France

Italy

Notes: The trough was 2009Q1 for Germany and Japan and 2009Q2 for Canada, the United States, the United Kingdom, France and Italy.
The last data point is 2014Q4 for all countries.
Sources: Haver Analytics; Department of Finance calculations.

Reflecting this solid performance, over 1.2 million more Canadians are working now
than at the end of the recession in June 2009one of the strongest job creation
records in the G-7 over this period. The majority of these net new jobs have been
full-time positions in high-wage, private-sector industries.

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The Budget in Brief 2015

The Governments prudent fiscal plan has carefully steered Canada to balanced
budgets in the face of headwinds, such as the sharp decline in crude oil prices
the third-largest decline in the last three decades. All the while, the Government
has remained committed to putting money back in the pockets of hard-working
Canadian families and businesses.

Our Government is fulfilling its promise to balance the federal budget.

We are now in a position to fulfill our promise to help Canadian families
balance theirs.
Prime Minister Stephen Harper

Actions taken by the Government over the past year will help further support
economic growth and the creation of jobs in Canada. On a cash basis, these include:

Support for Canadian families through the new Family Tax Cut and Universal
Child Care Benefit enhancements totalling $7.8 billion in 201516 and over
$4.5 billion ongoing.

Support for small businesses through the Small Business Job Credit and
Employment Insurance (EI) premium freezes for three years, followed by a
committed reduction in EI premiums to a seven-year break-even rate in 2017.

$5.8 billion in new investments that will continue to build and renew federal
infrastructure across the country, with the majority of this support being
delivered within three years.

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Strong Leadership: A Balanced-Budget,

Low-Tax Plan for Jobs, Growth and Security

These measures, together with those announced in Economic Action Plan 2015,
total almost $10 billion in 201516, or 0.5 per cent of GDP, and average $8.5 billion
per year thereafter, on a cash basis (Chart 1.6). This will provide significant support
to the Canadian economy starting in the second quarter of 2015.

Economic Action Plan 2015 invests in Canadas economy

Chart 1.6
Measures Supporting Jobs and Growth (Cash Basis)
billions of dollars

11

10

10.0

9.8

8.7

7.7

7.8

20162017

20172018

20152016

20182019

20192020

Note: The value of these measures is presented here on a cash basis, rather than an accrual basis, as the cash outlays correspond to
economic activity in the years shown.
Source: Department of Finance.

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The Budget in Brief 2015

Sound and sustainable public finances are paramount to ensuring ongoing economic
growth and job creation over the longer term. Balanced budgets ensure low taxes,
support the sustainability of the services and programs Canadians depend on, and
inspire confidence in investors and consumers.

In this challenging environment, it is vital that the federal government stay

focused on balancing its budget
Canadian Council of Chief Executives

Prior to the global recession, the Government reduced Canadas debt by more than
$37 billion and the federal debt-to-GDP ratio to 28.2 per cent. As a result, Canada
was well positioned to weather the storm as the global economy fell into recession.
Canada was able to emerge from the recession faster and stronger than virtually any
other major advanced economy.
In successive budgets, beginning with Budget 2010, and as the economy recovered,
the Government wound down fiscal stimulus and controlled spending to engineer a
return to balanced budgets.
Having balanced the budget, the set-aside for contingencies will continue to protect
the fiscal outlook from global economic uncertainty, and will be used to reduce the
level of federal debt, if it is not required.
At the G-20 Leaders Summit in 2013, Prime Minister Stephen Harper announced
Canadas commitment to achieve a federal debt-to-GDP ratio of 25 per cent by 2021.
In the 2013 Speech from the Throne, the Government committed to reduce the debtto-GDP ratio to pre-recession levels by 2017. The Government remains on target to
meet both commitments.

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Strong Leadership: A Balanced-Budget,

Low-Tax Plan for Jobs, Growth and Security

The Governments commitment to balanced budgets has made Canada a recognized

leader for fiscal stewardship on the world economic stage. Canadas total
government net debt-to-GDP ratio remains the lowest of any G-7 country and
among the lowest of the advanced G-20 countries (Chart 1.7).

Canadas net debt is the lowest of any G-7 country

Chart 1.7
Total Government Net Debt-to-GDP Ratios, 2015
Japan
Italy
France
United
Kingdom
United
States
G-7 average

Germany
Canada
0

20

40

60

80

per cent of GDP

100

120

140

Note: The total government net debt-to-GDP ratio is the ratio of total liabilities net of financial assets of the central, state and local levels
of government, as well as those in social security funds, to GDP. For Canada, total government includes the federal, provincial/territorial
and local government sectors, as well as the Canada Pension Plan and the Qubec Pension Plan. For international comparability,
adjustments are made to unfunded public pension liabilities.
Source: International Monetary Fund, Fiscal Monitor, April 2015.

Reducing Canadas debt burden is also a question of intergenerational fairnessit

would simply not be fair to saddle our children and grandchildren with inevitable tax
hikes to pay for the expenses we could not settle ourselves.
Balancing the budget takes hard work and tough choices. A balanced budget:

Ensures taxpayer dollars are used to support important social

servicessuch as health carerather than paying interest costs.

Preserves Canadas low-tax plan and allows for further tax reductions, fostering
growth and the creation of jobs for the benefit of all Canadians.

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The Budget in Brief 2015

Helps to instill confidence in consumers and investors, whose dollars spur

economic growth and job creation.

Strengthens the countrys ability to respond to longer-term challenges,

such as population aging, and unexpected global economic shocks.

Signals that public services are sustainable, ensuring fairness for future
generations by avoiding future tax increases or reductions in services.

To secure recent gains, the Government is proposing to enshrine in law its prudent
approach to fiscal planning by introducing balanced budget legislation. This
proposed legislation confirms the Governments ongoing commitment to
responsibly managing taxpayers money.

Economic Action Plan 2015

Going forward, global economic uncertainty dictates that for Canada to become an
even safer, more confident and more prosperous country, the Government must
continue to take responsible and deliberate steps to create jobs, foster economic
growth and maintain its commitment to fiscal responsibility.
Canadas Economic Action Plan is working, but the job is not done and there are
new challenges on the horizon. The Government must stay the course to protect
the economic interests of Canadians and the security of Canada.
Economic Action Plan 2015 will continue to implement measures that support what
matters to Canadians:

Supporting jobs and growth by maintaining the right economic environment

to allow job-creating businesses to thrive and reach new markets with their
products, proposing new investments in public infrastructure, and training a
highly skilled workforce that is responsive to the evolving needs of employers.

Helping families and communities prosper by continuing to provide tax relief

for Canadian families and individuals, enhancing opportunities for all
Canadians, and celebrating Canadas cultural and natural heritage.

Ensuring the security of Canadians by continuing to support the Canadian

Armed Forces and protecting Canadians from the threat of terrorism at home
and abroad.

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Strong Leadership: A Balanced-Budget,

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Maintaining focus on these priorities is the best way to ensure that Canadas future is
secure and prosperous, with a healthy economy fuelled by low taxes and sustainable
public finances.

Economic Developments
and Prospects (Chapter 2)

The Canadian economy has experienced one of the best performances

among the Group of Seven (G-7) countries over the recovery.

Over 1.2 million more Canadians are working now than at the end of the
recession, one of the strongest job performances among G-7 countries over
this period.

Since mid-2014, weak global growth, combined with continued steady

increases in oil supply, has led to significant declines in world crude
oil prices.

This is affecting Canada, which is a producer and net exporter of crude oil.

Moreover, actions taken by the Government in the fall of 2014 and in

Economic Action Plan 2015 will provide almost $10 billion of support to the
Canadian economy this fiscal year, starting in the second quarter of 2015.

Risks to the Canadian economic outlook remain largely external, stemming

from the uncertainty surrounding both the future path of oil prices and
global growth.

However, the Canadian economy is resilient: real gross domestic product

(GDP) is expected to grow at a pace of about 2 per cent in both 2015
and 2016.

Supporting the Manufacturing Sector and

Investing in Advanced Research
(Chapter 3.1)
Since 2006, the Government has taken action to reduce taxes to promote investment
in Canada, and leverage the collective efforts of post-secondary institutions, industry,
and government to build a robust research sector. Economic Action Plan 2015 builds
on this foundation by:

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Encouraging Investment in Canadas Manufacturing Sector

Maintaining a low tax burden on businesses to encourage investment

in Canada.

Providing manufacturers a 10-year tax incentive to boost productivityenhancing investment.

Providing up to $100 million over five years, starting in 201516, to support

product development and technology demonstration by Canadian
automotive parts suppliers through the new Automotive Supplier
Innovation Program.

Developing a national aerospace supplier development initiative.

Providing $2.5 million per year, starting in 201617, to increase the
analytical capacity needed to support the Defence Procurement Strategy.

Supporting World-Class Advanced Research

Providing an additional $1.33 billion over six years, starting in 201718,

to the Canada Foundation for Innovation to support advanced research
infrastructure at universities, colleges and research hospitals.

Creating a more efficient and effective national digital research infrastructure

system by providing $105 million over five years, starting in 201516, to
CANARIE, Canadas world-class high-speed research and
education network.

Dedicating an additional $46 million per year to the granting councils,

starting in 201617, focused in areas that will fuel economic growth and
respond to important challenges and opportunities.

Providing up to $243.5 million to secure Canadas participation in the Thirty

Meter Telescope and related domestic work on leading-edge components.

Providing up to $72.3 million in 201516, on a cash basis, to Atomic Energy

of Canada Limited to maintain safe and reliable operations at the Chalk
River Laboratories.

Providing an additional $30 million over four years, starting in 201617,

to support cutting-edge research and technology development in Canadas
satellite communications sector.

Extending Canadas participation in the International Space Station mission

to 2024.

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Dedicating $119.2 million over two years, starting in 201516, to the National
Research Councils industry-partnered research and development activities,
helping Canadian businesses increase their competitiveness and develop
new, cutting-edge products.

Helping to develop the next generation of research and development leaders

by providing $56.4 million over four years, starting in 201617, to Mitacs in
support of graduate-level industrial research and development internships.

Helping Small Businesses and

Entrepreneurs Create Jobs (Chapter 3.2)
This Government recognizes the vital role that small businesses play in creating jobs
and generating economic growth. Since 2006, the Government has taken significant
action to support job-creating businesses by lowering taxes, cutting red tape, and
encouraging entrepreneurship. Economic Action Plan 2015 builds on this
foundation by:

Helping Small Businesses Grow and Fostering

Entrepreneurship

Reducing taxes further for small businesses.

Improving access to financing for Canadian small businesses.

Increasing access to venture capital financing to help innovative,

high-growth companies grow and create jobs.

Providing $14 million over two years to Futurpreneur Canada in support

of young entrepreneurs.

Supporting the Action Plan for Women Entrepreneurs to help women

business owners succeed.

Increasing the Lifetime Capital Gains Exemption to $1 million for

owners of farm and fishing businesses.

Expanding services of the Business Development Bank of Canada and

Export Development Canada to help small and medium-sized enterprises.

Reducing Red Tape for Businesses and Enhancing

Corporate Governance

14

Reducing the frequency of remittances for the smallest new employers.

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Launching the planning and preparation required for federal adoption of

the Business Number as a Common Business Identifier.

Modernizing Canadas federal corporate governance framework to

facilitate best practices, including increasing womens participation in
corporate leadership.

Training a Highly Skilled

Workforce (Chapter 3.3)
Since 2006, the Government has acted to ensure the development of a skilled,
mobile and productive workforce. Despite significant investment, some challenges
remain. Many Canadians are still out of work or underutilized at a time when there
are skills and labour market shortages in certain sectors and regions. To this end,
Economic Action Plan 2015 proposes additional concrete actions that respond to
current labour market challenges and meet longer-term labour market
needs, including:

Training the Workforce of Tomorrow

Supporting provinces and territories to facilitate the harmonization of

apprenticeship training and certification requirements in targeted Red
Seal trades.

Providing $1 million over five years to promote the adoption of the Blue Seal
Certification program across Canada.

Making a one-time investment of $65 million to business and industry

associations to allow them to work with willing post-secondary institutions to
better align curricula with the needs of employers.

Expanding eligibility for the Low- and Middle-Income Canada Student Grants
to short duration programs.

Making the Canada Student Loans Program work for families by reducing
the expected parental contribution under the needs assessment process.

Removing the penalty on post-secondary students who work by eliminating

in-study student income from the Canada Student Loans Program needs
assessment process.

Investing $248.5 million over five years in Aboriginal labour

market programming.

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Investing $2 million over two years, starting in 201617, to expand the

Computers for Schools program, extending access to refurbished computer
equipment to non-profit organizations such as those that support low-income
Canadians, seniors and new Canadians.

Supporting Canadian Workers

Investing $53.8 million over two years to extend the current Employment
Insurance Working While on Claim pilot project to August 2016.

Enhancing labour market information, including the launch of a new onestop national labour market information portal.

Pursuing negotiations with provinces and territories on the $1.95-billion-peryear Labour Market Development Agreements to reorient training towards
labour market demand.

Providing $35 million over five years to make permanent the Foreign
Credential Recognition Loans pilot project.

Ensuring a Safe and Healthy Workplace

Strengthening Canada Labour Code protections for all employees and

interns under federal jurisdiction.

Providing $4.8 million over five years to increase compliance with the health
and safety provisions of the Canada Labour Code.

Modernizing the Government Employees Compensation Act to simplify and

accelerate claims processing and clarify coverage.

The Government will make every effort to reach agreement with bargaining
agents within a reasonable timeframe on necessary reforms to disability and
sick leave management.

Investing in Infrastructure (Chapter 3.4)

Our quality of life and ability to compete on the global stage depend on the
performance and quality of our public infrastructure. In Economic Action Plan
2015, this Government continues to make unprecedented long-term investments to
ensure that Canadians continue to benefit from world-class infrastructure across the
country by:

Investing in Infrastructure

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Continuing to provide $5.35 billion per year on average for provincial,

territorial and municipal infrastructure under the New Building Canada Plan.
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Increasing the borrowing limits of the Government of the Northwest

Territories to $1.3 billion and the Government of Nunavut to $650 million,
upon approval of the Governor in Council.

Providing an additional $750 million over two years, starting in 201718,

and $1 billion per year ongoing thereafter for a new and innovative Public
Transit Fundthe Governments largest targeted infrastructure programto
promote public transit infrastructure investment in a manner that is affordable
for taxpayers and efficient for commuters.

Creating a new dedicated infrastructure fund to support the renovation,

expansion and improvement of existing community infrastructure in all
regions of the country as part of the Canada 150 celebrations.

Continuing to build and renew federal infrastructure and on-reserve schools,

including through $5.8 billion in investments over six years.

Reviewing the usefulness of the rule that restricts federal pension funds from
holding more than 30 per cent of the voting shares of a company.

Growing Trade and Expanding

Markets (Chapter 3.5)
International trade and investment are vital to the continued growth of the Canadian
economy and contribute to the prosperity of people and businesses across Canada,
including in the natural resources sector. Since 2006, the Government has worked
tirelessly to ensure that Canadian exporters and investors have access to foreign
markets and preferential terms of trade and investment with other nations, and that
Canada responsibly develops its natural resources for the benefit of all Canadians.
Economic Action Plan builds on this track record by:

Fostering Trade

Providing $50 million over five years for a program to share the cost of
exploring new export opportunities with small and medium-sized enterprises.

Providing $42 million over five years to expand the footprint and resources
of the Trade Commissioner Service.

Securing agriculture market access by providing $18.1 million over two

years, starting in 201617, to promote competitiveness and trade
opportunities for the agriculture and agri-food sector.

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Providing an additional $12 million over two years, starting in 201617,

to market Canadian agricultural and agri-food products around the world.

Providing $5.7 million over five years, starting in 201516, to help secure
new market access for Canadian seal products.

Providing $3 million over three years, starting in 201516, for the

International Maritime Centre to attract foreign shipping companies
to establish their headquarters in Vancouver.

Supporting a new tourism marketing campaign in the United States.

Continuing to implement the Beyond the Border and Regulatory Cooperation

Council Action Plans with the United States to strengthen our long-term
security and trade relationship.

Creating an Internal Trade Promotion Office within Industry Canada

to support efforts to renew the Agreement on Internal Trade.

Ensuring that Canadas trade remedy system operates in an effective,

accessible and transparent manner.

Responsible Resource Development

Providing accelerated capital cost allowance treatment for assets used in

facilities that liquefy natural gas.

Extending the Mineral Exploration Tax Credit until March 31, 2016.
Continuing to support effective project approvals through the Major Projects
Management Office Initiative, with $135 million over five years, starting
in 201516.

Providing $34 million over five years, starting in 201516, to continue

consultations with Canadians related to projects assessed under the
Canadian Environmental Assessment Act.

Dedicating $80 million over five years, starting in 201516, to the National
Energy Board for safety and environmental protection and greater
engagement with Canadians. This funding will be fully cost-recovered
from industry.

Providing $30.8 million over five years, starting in 201516, for measures
to enhance the safety of marine transportation in the Arctic and further
strengthen marine incident prevention, preparedness and response in waters
th
south of the 60 parallel.

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Providing $22 million over five years, starting in 201516, to Natural

Resources Canada to renew the Targeted Geoscience Initiative.

Dedicating $23 million over five years, starting in 201516, from Natural
Resources Canada to stimulate the technological innovation needed to
separate and develop rare earth elements and chromite.

Continuing to support the transformation of the forest sector by providing

$86 million over two years, starting in 201617, to extend the Forest
Innovation Program and the Expanding Market Opportunities Program.

Low-Tax Plan to Help Families Make Ends

Meet (Chapter 4.1)
Since 2006, the Government has introduced several measures to make life more
affordable for Canadian families and individuals, while recognizing that they are
better placed than governments to determine their own spending priorities.
Economic Action Plan 2015 builds on the Governments record of support for
families and individuals by keeping taxes low and introducing new measures to help
families make ends meet, support seniors, and protect consumers, such as:

Helping Families Make Ends Meet

Increasing the Tax-Free Savings Account annual contribution limit

to $10,000.

Reaffirming the Governments commitment to reduce Employment Insurance

premiums for over 16 million Canadians in 2017.

Extending Employment Insurance Compassionate Care Benefits from six

weeks to six months to better support Canadians caring for gravely ill
family members.

Supporting Seniors

Reducing the minimum withdrawal factors for Registered Retirement

Income Funds to permit seniors to preserve more of their retirement savings
to better support their retirement income needs.

Introducing a new Home Accessibility Tax Credit for seniors and persons
with disabilities to help with the costs of ensuring their homes remain safe,
secure and accessible.

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Protecting Consumers and Enhancing Canadas

Financial Sector

Delivering a new and exclusive financial consumer protection framework for

federally regulated banks.

Expanding the voluntary mortgage prepayment disclosure commitment to

non-federally regulated mortgage lenders.

Launching a National Strategy to support improved financial literacy.

Implementing the Taxpayer Protection and Bank Recapitalization regime for
Canadas systemically important banks.

Building Strong Communities (Chapter 4.2)

Since 2006, the Government has fostered opportunities to work, live, and prosper in
safe and vibrant communities. In addition, the Governments continued support for
our natural and cultural heritage helps build stronger communities by bringing
people together through shared artistic and cultural experiences and promoting a
safe and clean environment. Economic Action Plan 2015 advances the
Governments ongoing commitment by:

Supporting the Charitable and Non-Profit Sector

Exempting donations involving private shares and real estate from

capital gains tax.

Providing charities with more flexibility to diversify their investments.

Taking Action for Veterans

Introducing a new Retirement Income Security Benefit to provide additional

financial security after the age of 65 for moderately to severely
disabled veterans.

Expanding access to the Permanent Impairment Allowance to help

compensate disabled veterans for the loss of career opportunities associated
with their disabilities.

Modifying the Earnings Loss Benefit to ensure that part-time Reserve Force
veterans have access to the same level of income support as Regular and
full-time Reserve Force veterans.

Creating a new tax-free Family Caregiver Relief Benefit to recognize the vital
contributions of informal caregivers to the health and well-being of veterans.

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Increasing the level of individualized care to veterans requiring regular

support by improving the ratio of veterans to case managers.

Supporting the Most Vulnerable in Communities

Providing $150 million over four years, starting in 201617, to allow

cooperative and non-profit social housing providers to prepay long-term,
non-renewable mortgages held with Canada Mortgage and Housing
Corporation without penalty.

Enhancing support for Child Advocacy Centres across Canada.

Helping Canadians With Disabilities

Introducing a new Home Accessibility Tax Credit for persons with

disabilities and seniors to help with the costs of ensuring their homes remain
safe, secure and accessible.

$2.0 million in 201516 to support stakeholder consultations on a Canadian

Autism Partnership.

Extending the temporary measure that allows a qualifying family member

to become the plan holder of a Registered Disability Savings Plan.

Introducing amendments to the Copyright Act that will enable Canada to

implement and accede to the Marrakesh Treaty to Facilitate Access to
Published Works for Persons Who Are Blind, Visually Impaired or
Otherwise Print Disabled.

Investing in the Health of Canadians

Increasing transfers for health care by a projected $27 billion over the
next five years.

Providing $14 million over two years for the Canadian Foundation for
Healthcare Improvement to help identify efficiencies in the health system.

Renewing the mandate of the Mental Health Commission of Canada for

another 10 years, beginning in 201718.

Providing up to $42 million over five years, starting in 201516, to help

improve seniors health through innovation by establishing the Canadian
Centre for Aging and Brain Health Innovation.

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Strong Leadership: A Balanced-Budget,

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Investing in Aboriginal Communities

Investing $30.3 million over five years for the expansion of the First Nations
Land Management Regime to create further opportunities for economic
development on reserve.

Providing $200 million over five years, starting in 201516, to improve First
Nations education.

Providing $12 million over three years to Indspire to provide post-secondary

scholarships and bursaries for First Nations and Inuit students.

Investing $2 million per year ongoing for mental wellness teams in First
Nations Communities.

Assisting International Communities

$6 million over five years, starting in 201516, to introduce measures that

will help ensure Canadians have access to safe, reliable and lower-cost
remittance services.

$22.8 million in 201617 for Grand Challenges Canada to continue its

promising work towards solving global health challenges through innovation.

Establishing the Development Finance Initiative to support effective

international development by providing financing, technical assistance and
business advisory services to firms operating in developing countries.

Celebrating Our Heritage

th

Supporting activities and events to celebrate Canadas 150 anniversary

in 2017, with $210 million over four years, starting in 201516.

Providing $13.4 million over five years, starting in 201516, and $2.8 million
ongoing to support and modernize the Canadian Honours System and bring
it closer to all Canadians.

Investing up to $20 million over four years, beginning in 201617, to support

the next generation of Canadian Olympic and Paralympic athletes.

Promoting arts and culture at Torontos waterfront by providing $25 million

over five years, beginning in 201617, to renew the Harbourfront Centre
Funding Program.

Proposing changes to the Copyright Act to extend the term of protection

of sound recordings and performances.

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Protecting Canadas Environment

Continuing to support, with $75 million over five years, starting in 201516,
the implementation of the Species at Risk Act to protect Canadas diverse
species and secure the necessary actions for their recovery.

Providing $2.0 million in 201516 to the Pacific Salmon Foundation

to support the Salish Sea Marine Survival Project.

Extending the Recreational Fisheries Conservation Program by providing

$10 million per year for three years, starting in 201617, to support the
conservation of recreational fisheries across the country.

Dedicating $34 million over five years, starting in 201516, to continue to

support meteorological and navigational warning services in the Arctic.

Renewing the Chemicals Management Plan, with $491.8 million over

five years, starting in 201617, to continue to assess and manage the risks
to human health and the environment from new and existing
chemical substances.

Renewing support for the Federal Contaminated Sites Action Plan with
$99.6 million over four years ($1.35 billion on a cash basis), starting
in 201617.

Protecting Canadians (Chapter 4.3)

The Governments foremost responsibility is to ensure the safety and security of
Canadians and defend our sovereignty. Supporting Canadian men and women in
uniform is a top priority of the Government. Economic Action Plan 2015 introduces
new measures to strengthen national security and ensure Canadians feel safe and
secure in their homes, online, and in their communities, such as:

Defending Canada

Strengthening the Canadian Armed Forces by providing $11.8 billion over

10 years through an increase to the annual escalator for National Defences
budget to 3 per cent, starting in 201718.

Providing up to $360.3 million in 201516 for the Canadian Armed Forces to

extend its mission to counter the Islamic State of Iraq and the Levant (ISIL).

Providing $7.1 million in 201516 for the Canadian Armed Forces to deliver
training assistance to the Ukrainian Security Forces.

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Strong Leadership: A Balanced-Budget,

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Providing $23 million over four years on a cash basis, starting in 201516,
to upgrade the physical security of Canadian Armed Forces bases.

Enhancing National Security

Investing $292.6 million over five years in intelligence and law enforcement
agencies for additional investigative resources to counter terrorism.

Providing $12.5 million over five years, starting in 201516, and $2.5 million
ongoing thereafter, in additional funding to the Security Intelligence
Review Committee to enhance its review of the Canadian Security
Intelligence Service.

Providing $58 million over five years, starting in 201516, to further protect
the Government of Canadas essential cyber systems and critical
infrastructure against cyber attacks.

Investing $36.4 million over five years to support the operators of Canadas
vital cyber systems in addressing cyber security threats, as required by
new legislation.

Providing $60.4 million over three years on a cash basis to support an

enhanced security model on Parliament Hill.

Protecting the Integrity of Our Borders

Providing $15.7 million over five years to expand eligibility for the Electronic
Travel Authorization to low-risk travellers from Brazil, Bulgaria, Mexico and
Romania to make it easier and faster for legitimate travellers from these
countries to come to Canada.

Strengthening Community Safety

Investing $27 million over five years, starting in 201516, to enhance

security measures at Canadas federal courts and registry offices and the
Supreme Court of Canada.

Providing $10 million over five years to the City of Ottawa to support policing
services in the Nations Capital.

Providing $3 million over two years, starting in 201617, to take initial steps
to establish a Public Safety Broadband Network, a high-speed mobile
network dedicated to emergency management.

Supporting a memorial for the three Royal Canadian Mounted Police

officers killed in Moncton in June 2014.

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Balancing the Budget (Chapter 5)

The Government is fulfilling its promise to balance the federal budget in 2015. The
Government will return to balanced budgets while maintaining the lowest federal tax
burden on Canadians in over half a century. Economic Action Plan 2015 introduces
new efforts to build on our sound public finances and further modernize
government operations.

The Government is fulfilling its promise to balance the budget in 2015.

The deficit has been reduced from $55.6 billion at the height of
the global economic and financial crisis to a projected surplus of
$1.4 billion in 201516.

The federal debt-to-GDP (gross domestic product) ratio is expected to fall

to 27.9 per cent in 201718, below its pre-recession low, putting the
Government on track to meeting its target of 25 per cent by 2021.

Canadas total government net debt burden is the lowest of any

Group of Seven (G-7) country and among the lowest of the advanced
G-20 countries.

The Government will introduce balanced budget legislation to enshrine

in law its prudent approach to fiscal planning.

To support debt reduction, the Government is planning on dedicating

the amounts set aside for contingencies, if not required, to reduce
the federal debt.

To ensure that the Government continues to do business with ethical

suppliers in Canada and abroad, a new government-wide procurement
integrity framework will be introduced.

The Government is also proposing new measures as part of its

ongoing effort to strengthen tax compliance, and improve the fairness
and integrity of the tax system, to ensure everyone pays their
fair share.

Balanced budgets keep taxes low and ensure that taxpayer dollars are used
to support the programs that Canadians depend on rather than paying
interest costs.

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