These savings will come from areas such as:
- Increasing efficiencies within government
- Reducing travel costs
- Continuing to control public service compensation
Adding these savings with others measures from recent budgets; it results in cumulative savings of more than $84 billion.
How does Canada's financial position now compare internationally?
Canada is now further ahead than any of the major developed economies (G-7 countries) when it comes to creating jobs and economic growth. We have seen 950,000 net new jobs since the economic downturn. Canada also leads when it comes to income growth, and has the lowest debt-to-GDP ratio. That ratio may not be as low as Estonia's, but among the G-7, Canada's position is the most envied.
Canada also is now among just a handful of nations in the world with a triple-A credit rating.
From 2006 to 2008, our Conservative Government paid down $37 billion in debt, placing our country in a strong position to weather the global recession. The same responsible and prudent fiscal management continued through our Economic Action Plan: the temporary stimulus has now ended, government spending is under control, taxes are lower, and we have eliminated wasteful and inefficient spending. It is vital that we continue along this path. The global economy is still fragile and some of our biggest trading partners are among the worst affected.
What items in this year's budget might interest the Estonian community here in Canada?
The Government announced in the budget that it will eliminate all tariffs on baby clothing and sports equipment. This will provide relief for new parents and athletes young and old.
Another budget item that comes to mind – for anyone looking to give a first-time charitable donation, for example to a registered Estonian Canadian charity, the new temporary First-Time Donor's Super Credit will provide an additional 25% tax credit on a first-time donation. This new credit was announced in the budget to encourage charitable giving from those who have not claimed a charitable tax donation credit in the last five years.
I consulted last year with business leaders of Estonian heritage and there are priorities they raised which have again been reflected in this year's budget:
- Maintaining a competitive tax system (no increase in taxes)
- Cutting government waste ($2 billion more in savings)
- Free trade expansion and market diversification (we are moving closer to finalizing a free trade agreement with the European Union)
- Resource development (extending the Mineral Exploration Tax Credit for flow-through share investors)
How is the Canadian job market right now?
The Conservative Government's actions have been effective in creating job growth. Since the depth of the recession in July 2009, of the 950,000 net new jobs created, over 90% are full time and nearly 80% are in the private sector.
While many Canadians are looking for work, several industries in Canada continue to face shortages of skilled workers— meaning jobs are going unfilled. Training in Canada is not sufficiently aligned to the skills employers need. Or, to the jobs that are actually available. This causes a drag on the economy, resulting in higher unemployment and slower economic growth than we should otherwise expect. Fortunately, by providing the right training, we can significantly reduce the mismatch between employers and job seekers.
In the Economic Action Plan 2013, we have announced the creation of the Canada Job Grant, which could provide $15,000 or more per person, including a maximum federal contribution of $5,000 matched by provincial/territorial and employer funding, to help Canadians get the skills they need for in-demand jobs. Once fully implemented, this job-creation initiative will help nearly 130,000 Canadians each year access training for job opportunities that actually exist. Our focus is on job creation and economic growth, and this budget delivers for Canadians.
Estonian Life
