South Shore St. Margaret's MP Gerald Keddy

Budget 2008 continues reducing debt and taxes, focuses government spending, and provides additional support for sectors of the economy that are struggling.

This year alone the federal government is injecting $21-billion of stimulus into the Canadian economy as a result of all of our tax relief measures. As a share of the economy this is significantly greater than the stimulus package offered by the U.S.

“Our government is taking the path that requires focus, prudence and discipline,” said Gerald Keddy, Member of Parliament for South Shore – St. Margaret’s. “This budget builds on our long-term economic plan Advantage Canada, a plan that is a realistic and responsible way forward.”

Budget 2008 also provides Canadians with the most important federally-driven personal finance innovation since the introduction of the Registered Retirement Savings Plan (RRSP): the Tax-Free Savings Account. This flexible, registered, general-purpose account will allow Canadians to watch their savings – including interest income, dividend payments and capital gains – grow tax free.

“The Tax-Free Savings Account is the first of its kind in Canadian history,” said Keddy. “It will provide all Canadians with a powerful incentive to save. An RRSP is primarily intended for retirement, but the Tax-Free Savings Account is like an RRSP for everything else in your life.”

Budget 2008 also demonstrates responsible leadership by:

• Paying down debt. Since taking office, the Government has paid down more than $37-billion on our “national mortgage”, including $10.2-billion this fiscal year. The Government’s aggressive pay down of debt has saved Canadians $2-billion in ongoing interest savings a year, which has been passed on to Canadians in tax relief through the Government’s Tax Back Guarantee.

• Strengthening Canada’s tax advantage. Since taking office, the Government has delivered almost $200-billion in tax relief over this and the next five years. Budget 2008 extends accelerated capital cost allowance treatment to the manufacturing and processing sector by three years on a declining basis – providing Nova Scotia businesses with an additional $2.4-million in tax relief.

• Investing in the future. We are extending the federal gas tax fund to municipalities permanently. This will provide an additional $2-billion a year, every year, forever. Budget 2008 also provides $101-million to Marine Atlantic over five years to secure a new vessel for its Nova Scotia to Newfoundland and Labrador service, $22-million to support aquaculture and $10-million over two years for the Small Craft Harbour Divestiture program.

• Investing in Seniors. We are removing disincentives to work for seniors by raising the current Guaranteed Income Supplement (GIS) earned income exemption to $3,500 from its current maximum exemption level of $500. Currently, the GIS is reduced by 50 cents for every dollar over $500 that seniors earn.

• Changes for Farmers. We are providing livestock producers with better access to cash - $22-million to improve access to the Advance Payments Program, which is designed to help livestock producers address the rising cost of production.

• Targeting support. Nova Scotia will receive $35-million over three years through the $1-billion Community Development Trust to support efforts to help vulnerable communities adjust to global economic uncertainty, $14-million over two years through the Public Transit Capital Trust 2008, $63-million for infrastructure initiatives, $14-million for labour market training, and $25-million as its share of the Clean Air and Climate Change Trust, the HPV Immunization Trust and the Patient Wait Times Guarantee Trust.

• Providing leadership at home. We are providing Nova Scotia with $11-million to hire new front line police officers over the next five years. Budget 2008 also provides funding to preserve and protect the environment, including $5-million to support carbon capture and storage research in Nova Scotia. Budget 2008 provides $660-million to support Aboriginal Canadians as well as funding to support those with mental health issues.

• Providing leadership abroad. We are providing the Canadian Forces with stable and predictable funding to permit long-term planning and delivering on our promises for international assistance.

As a result of restoring fiscal balance Nova Scotia will receive almost $2.7-billion in 2008-09. This represents an increase of $363-million since 2005-06. These transfers include:

• $1.5-billion through Equalization;

• $106-million through payments for its 1986 and 2005 Offshore Accords;

• $664-million through the Canada Health Transfer; and

• $297-million through the Canada Social Transfer.

“Our Government, through Budget 2008, is taking the path that requires focus, prudence and discipline,” said Keddy. “Some would have us go down the path to higher spending, higher interest payments and higher taxes. That approach is misguided.”