Conservatives Set To Reintroduce Canadian Budget

by Mike Godfrey, Tax-News.com, Washington

13 May 2011

Canada looks set for a June Budget, which Finance Minister Jim Flaherty says will remain largely the same as the one introduced last March, albeit with some economic updates.

Speaking at the Bloomberg Canada Economic Summit, Flaherty said the reintroduction was a priority for the newly re-elected government. Flaherty's last Budget, delivered on March 22, fell victim to the early dissolution of parliament, occasioned by a vote of no confidence in Prime Minister Stephen Harper.

Harper has since won the election triggered by that vote, securing Canada's first majority administration in seven years. It is this majority the government hopes will allow them to proceed with the passage of the postponed Budget.

Although no precise date was supplied, Flaherty is expected to reintroduce the package next month. He told reporters following the Summit that, while the Budget will retain many of the features of the original, an economic update will be necessary, occasioned by the availability of new data.

The fiscal elements of Harper's election manifesto focused largely on this planned reintroduction, but a few surprises, including a series of minor tax breaks and incentives, were also added during the campaign. It is not yet known whether these will make it into Flaherty's June Budget.

In addition, it has been suggested that the election pledge to achieve a return to surplus by 2014-15 is being sidelined, the previous Budget having only intended to secure budgetary balance by that date.

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