Budgeting for Extraordinary Times

February 03, 2009

Maple Ridge, Truly, these are extraordinary times that call for extraordinary measures.

A global recession that began in the United States with a crisis in their financial institutions has spread. Around the world we have seen banks fail and stock markets decline dramatically. In less than four months since the last election, the global economy has weakened beyond what anyone predicted.

It’s now clear that Canada has entered a recession.  We entered it later than other G7 countries, and it’s shallower here than elsewhere, but Canadians in all regions have begun to feel its effects, even here in Pitt Meadows—Maple Ridge—Mission.  Although it’s more serious than anything we have experienced in generations, thankfully, Canada is weathering the storm.

After unprecedented consultation, on January 27th our Government presented Budget 2009, our Economic Action Plan to stimulate the economy and protect Canadians hit the hardest by the global economic crisis.

Here’s how we’re going to do it . . .

• Income and payroll tax cuts to boost income and get the economy working again;
• A home renovation program to spur construction, create jobs, and help Canadians improve their homes;
• Roads, bridges, buildings and other infrastructure to boost the economy, create jobs and make Canada stronger for the long-term;
• Post secondary education funding and broadband expansion to prepare for the jobs of the future.

We’ve worked hard to balance these initiatives with measures that will protect what is good about our system, and support those Canadians who stand to suffer the most from the global economic downturn. Our plan also includes:

• Increases in the support under Employment Insurance for Canadians who have lost their jobs;
• Skills training to help people get back into the workforce; and,
• Significant money to help communities hardest hit by the downturn.

Our Government is also addressing the reduced availability of financing in Canada that has resulted from the global credit crisis. Economic Action Plan 2009 includes measures to help Canadians and businesses get the financing they need, including car loans and mortgages.

We are making up to $200 billion in financing available to credit worthy borrowers. This initiative will provide support to the small and medium sized businesses that drive our economy, so they can invest in their operations to help grow, create and maintain jobs.

Canada’s Economic Action Plan reflects the strong consensus among Canadians that the Government must deliver potent economic stimulus to encourage growth and help those who are most vulnerable—even if that means running a deficit. I’ll be supporting this Plan because I believe it will allow us to emerge a stronger country once the storm passes.

As always, if you have any questions or concerns about Canada’s Economic Action Plan or any other federal matter, don’t hesitate to contact me.  I would be happy to discuss them with you.