2006 Canadian federal budget
Encyclopedia
The Canadian federal budget for fiscal year 2006-2007 was presented to the Canadian
House of Commons
by Finance Minister Jim Flaherty
on May 2, 2006. Among the most notable elements of the federal budget
were its reduction of the Goods and Services Tax
by one percentage point, income tax
cuts for middle-income earners, and $1,200-per-child childcare
payment (the "Universal Child Care Benefit") for Canadian parents.
Prime Minister
Stephen Harper
called the bill a message of what Canadians should expect from his Conservative
minority government
. Many aspects of it were criticized by opposition parties. The Liberal Party
and New Democratic Party
indicated that they would not support the budget, while the Bloc Québécois
indicated that it would vote in favour of it.
On June 6, 2006, the budget was introduced for third reading in the House of Commons. Amid an apparent mix-up, and confusion, no MPs rose to speak. Thus, the budget was declared passed by unanimous consent, passing through the House a week earlier than had been scheduled.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
House of Commons
Canadian House of Commons
The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...
by Finance Minister Jim Flaherty
Jim Flaherty
James Michael "Jim" Flaherty, PC, MP is Canada's Minister of Finance and he has also served as Ontario's Minister of Finance. From 1995 until 2005, he was the Member of Provincial Parliament for Whitby—Ajax, and a member of the Progressive Conservative Party caucus...
on May 2, 2006. Among the most notable elements of the federal budget
Canadian federal budget
In Canada, federal budgets are presented annually by the Government of Canada to identify planned government spending, expected government revenue, and forecast economic conditions for the upcoming year....
were its reduction of the Goods and Services Tax
Goods and Services Tax (Canada)
The Goods and Services Tax is a multi-level value added tax introduced in Canada on January 1, 1991, by then Prime Minister Brian Mulroney and his finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers' Sales Tax ; Mulroney claimed the GST was implemented because the MST...
by one percentage point, income tax
Income taxes in Canada
Income taxes in Canada constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada...
cuts for middle-income earners, and $1,200-per-child childcare
Day care
Child care or day care is care of a child during the day by a person other than the child's legal guardians, typically performed by someone outside the child's immediate family...
payment (the "Universal Child Care Benefit") for Canadian parents.
Prime Minister
Prime Minister of Canada
The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...
Stephen Harper
Stephen Harper
Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election...
called the bill a message of what Canadians should expect from his Conservative
Conservative Party of Canada
The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum...
minority government
Minority governments in Canada
During the history of Canadian politics, eleven minority governments have been elected at the federal level. There have also been two minority governments resulting from governments being replaced between elections, for a total of thirteen federal minority governments in twelve separate minority...
. Many aspects of it were criticized by opposition parties. The Liberal Party
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
and New Democratic Party
New Democratic Party
The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in...
indicated that they would not support the budget, while the Bloc Québécois
Bloc Québécois
The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative...
indicated that it would vote in favour of it.
On June 6, 2006, the budget was introduced for third reading in the House of Commons. Amid an apparent mix-up, and confusion, no MPs rose to speak. Thus, the budget was declared passed by unanimous consent, passing through the House a week earlier than had been scheduled.
Highlights
These initiatives are to be delivered in periods that vary from one to five years:- $1.1 billion for the Canadian ForcesCanadian ForcesThe Canadian Forces , officially the Canadian Armed Forces , are the unified armed forces of Canada, as constituted by the National Defence Act, which states: "The Canadian Forces are the armed forces of Her Majesty raised by Canada and consist of one Service called the Canadian Armed Forces."...
. - $2 billion in general spending cuts.
- The creation of the Canada Employment Credit, a tax credit to be worth approximately $155 per employed Canadian by 2007.
- $1 billion for emergency preparedness, specifically against a potential flu pandemic.
- A decrease (in law) in the lowest income tax rate from 16% to 15.25% for 2006, and to 15.5% for subsequent years.
- Increases to the amount that an individual can earn before paying personal income tax from about $8,300 to $10,000 by 2010.
- A reduction of the general corporate income tax rate from 21% in 2007 to 19% in 2010, and elimination of the 3% corporate income surtax after 2006.
- $160 million for hiring new police officers at the Royal Canadian Mounted PoliceRoyal Canadian Mounted PoliceThe Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...
. - $3 billion to reduce the government's debt.
- No funding for the Kyoto ProtocolKyoto ProtocolThe Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
- No funding for the Kelowna AccordKelowna AccordThe Kelowna Accord is a series of agreements between the Government of Canada, First Ministers of the Provinces, Territorial Leaders, and the leaders of five national aboriginal organizations in Canada. The Accord sought to improve the education, employment, and living conditions for Aboriginal...
See also
- 2005 Canadian federal budget2005 Canadian federal budgetThe 2005 Canadian federal budget was the budget of the Government of Canada for the 2005-2006 fiscal year. It was presented on February 23, 2005, by Finance Minister Ralph Goodale. It was the first federal budget presented by a minority government in Canada since the budget presented by the...
- 2007 Canadian federal budget2007 Canadian federal budgetThe Canadian federal budget for the 2007-2008 fiscal year was presented to the Canadian House of Commons by Finance Minister Jim Flaherty on March 19, 2007. The federal budget included $14 billion in new spending and $5.7 billion in tax cuts...
- Domestic policy of the Harper governmentDomestic policy of the Harper governmentSeveral policies regarding interior and domestic issues in Canada were planned and adopted by the Canadian Cabinet, chaired by Prime Minister Stephen Harper, following the January 23, 2006 election of the Conservative Party to a minority of seats in the House of Commons, such as social and...