This briefing looks at the 2011 federal budget—a budget that focuses on deficit reduction.
2011 Federal Budget Briefing
2011 Federal Budget Briefing
Canadian Economic Analysis
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- After two years of record deficits that followed the landmark stimulus plan of 2009, the federal government has restated its plan to return to balanced books. However, this plan does not entail cuts to overall program spending.
- Over the next four years, the fiscal plan will see the deficit reduced by about $10 billion a year— such that by 2014–15, it is essentially eliminated.
- Budget 2011 reasserts that federal departmental budgets will remain frozen at 2010–11 levels for the next three years.
- The $7.5 billion in new measures over the next five years is sliced thin and spread among a wide array of new programs.
- Households get $1.8 billion over the next two years, with new spending targeted at low-income seniors, households with dependents, and a $400-million continuation of a program to retrofit homes for more energy efficiency.
- The government’s fiscal plan is based on a conservative economic outlook—a prudent assumption given the uncertainty associated with the global economy.
- The burden of health care will make it much more difficult for provinces to put their finances in order, making it all the more important that the federal government alleviate pressures on Canadian borrowing requirements by returning to balance.
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