The surplus budget has initiated tons of government spending. This is the largest spending spree since the Trudeau era and the second largest in the last four decades. Although there are critics as to where the money is being spent, we think that the new spending plan will surely stimulate our economy and push the Canadian economy further into prosperity. The following are the areas of focus for the $138.6 billion spending plan for 2002-2003. .
Health Care: $34.8 billion will be spent on health care. This includes a $16 billion health reform fund, $9.5 billion in increased cash transfers and an immediate $2.5 billion to ease current existing problems and pressures.
Research: $5.1 billion for grants, scholarships, funding to research organizations.
Infrastructure: $3 billion in new money. (over a period of 10 years).
Defence: An extra $800 million a year, plus an extra $150 million for the next two years and $600 million for special situations over the next two years. (ex. conflict with Iraq).
Natives: $2 billion to improve water, health education and child care. (over the next 2-11 years).
Environment: $3 billion over the next 5 years, including $2 billion to satisfy the Kyoto Protocol.
Families: $965 million increase to National Child Benefit. (ex. A benefit for a first-born child will increase approx. $1000 per family by 2007).
$935 million in child care over the next five years.
$413 a week, for 6 weeks will be the maximum for Employment Insurance. .
Tax Breaks: Five-year phaseout of the federal capital tax.
Travel security taxes are cut by 50% for domestic flights.
Employment insurance premium rate for 2004 decreases to $1.98 per $100 from $2.10.
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Even with all these extra funds going into these various categories, the plan is designed so that there will be .
a surplus for the years to come. The predicted surplus for 2002-2003 is $6.4 billion, $8.2 billion for 2003-.
2004 and $10.7 billion for 2004-2005.
