OTTAWA: Canada’s ruling Liberal government on Tuesday unveiled a stimulus budget, in hope of reviving the country’s economy through spending heavily on infrastructure and tax benefits for the middle class.
The first federal budget of the new government also included unprecedented spending on indigenous communities in Canada.
The budget is expected to boost Canada’s economic growth by 0.5 percent in the first year and 1 percent in the second year.
Canada’s resource-dependent economy has been hard hit by the long-standing oil price plunge on the global market.
Minister of Finance Bill Morneau on Tuesday proposed in the budget a spending of 120 billion Canadian dollars (about 91 billion U.S. dollars) in infrastructure over the next decade. He promised that the approach would generate more jobs, improve the quality of life for Canadians and spur economic growth.
Minister Morneau also projected a deficit of 29.4 billion Canadian dollars for fiscal 2016-17. The deficit would fall slightly to 29 billion Canadian dollars for fiscal 2017-18, but there would still be a deficit of 14.3 billion Canadian dollars in fiscal 2020-21.
In a communique issued at a press conference Tuesday, Minister Morneau stressed a strong economy starts with a strong middle class and that building an economy that works for Canadians and their families is the top priority of the new government.
“Our plan will recapture the hope and optimism for the future that existed in previous generations, and put it to work for the next. Real change is not just about today or tomorrow. It is about revitalizing the economy in the years and decades to come, so that it works for the middle class and helps those working hard to join it,” said the minister.
The new government, led by Prime Minister Justin Trudeau, was elected in October. Canada has population of 35 million and its gross domestic product was 1.785 trillion U.S. dollars in 2014.
