MSCM LLP - Accountants and Advisors

BUDGET COMMENTARY
In the afterglow of the Vancouver Olympics, federal Finance Minister Jim Flaherty mounted a podium in the House of Commons on Thursday, March 4, to table his fifth Budget, the second of the current minority Conservative government and the second in succession to follow a period of prorogation of the House.

The Budget projects a federal budgetary deficit of $53.8 billion in fiscal 2009-10 and a further $49.2 billion in 2010-11, but sharp declines thereafter leading to a deficit of only $1.8 billion in 2014-15. This outlook reflects the government’s confidence in longer-term economic recovery as well as the intention to move away from stimulus spending to fiscal restraint, the Minister said. He also forecast that Canada would return to balanced budget status before any other G7 country.

Noteworthy tax-related proposals include closing some perceived tax loopholes to promote fairness, and the elimination of remaining tariffs on imported machinery and equipment. These and other provisions are discussed below.

Download the full Federal Budget Commentary, March 4, 2010