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Tax relief and major spending projects

From tax breaks for lower income earners to infrastructure projects from coast to coast, the 2009 federal budget's two-year stimulus plan is a sweeping initiative

Globe and Mail Update

A plan for troubled times

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The economy

The Canadian economy is forecast to contract by 0.8 per cent in 2009.

Fiscal outlook

Large deficits of $34-billion in the 2009-10 fiscal year and $30-billion in the 2010-11 fiscal year will quickly be reduced and then eliminated to show a small surplus of $700-million in 2013-14.

The regions

$1-billion over five years for a development agency to help people and businesses in Southern Ontario.

$1-billion over two years for a Community Adjustment Fund.

Taxes

A $20-billion cut to personal income taxes, increasing the basic personal amount and top of the two lowest income tax brackets by 7.5 per cent.

Housing

Home Renovation Tax Credit, offering $1,350 in tax relief for home renovations.

An additional $50-billion to the Insured Mortgage Purchase Program.

First-time home buyers to get up to $750 in tax relief.

$2-billion for social housing for low-income earners, seniors, people with disabilities and native Canadians.

Employment

$8.3-billion skills budget over two years, half of which will be used to freeze premiums.

Employment Insurance program enhancements.

Training programs for jobless Canadians.

Extend EI by five weeks to 50 weeks.

Improve work sharing provisions.

Infrastructure

Almost $12-billion in new project funding over two years, including a $4-billion fund for shared-cost projects with provinces and municipalities to repair roads other infrastructure. The government will also create a $500-million fund for recreational facilities like hockey arenas. Projects include improvements to the Montreal-Ottawa-Toronto rail corridor; repairing Montreal's Champlain bridge, twinning a section of the Trans-Canada Highway through Banff National Park; improvements to the Sarnia and Fort Erie border crossings.

Consumer credit

New disclosure rules and a minimum grace period on credit cards.

Business

Improved access to capital from $13-billion in additional financing for Canada Mortgage and Housing Corp., Export Development Canada and the Business Development Bank of Canada.

New life insurance debt guarantee facility.

Extend capital cost allowance rate on investments in manufacturing or processing equipment and machinery.

Offer a temporary 100 per cent CCA rate for computers bought after Jan. 27, and before Feb. 1, 2011.

Increase the income eligible for the small business tax rate to $500,000 from $400,000.

Increase maximum loans available under the Canada Small Business Financing Program .

Investing

Create a national securities regulator, with provincial participation on a voluntary basis.

Develop a national strategy on financial literacy.

Broadband

$225-million over three years to extend broadband coverage to unserved communities.

Autos

Offering short-term repayable loans to the industry.

Create a $12-billion credit facility to support vehicle and equipment financing.

Forestry

$170-million over two years.

Mining

Mineral exploration tax credit extended by one year.

Energy

$350-million over two years for Atomic Energy Canada Ltd.

New Clean Energy Fund, to generate more than $2.5-billion in investments.

Accelerated write-offs for companies that invest in carbon capture and storage technology.

New $1-billion green infrastructure fund, including transmission lines to connect renewable energy projects.

Education

$2-billion to repair post-secondary institutions.

$50-million for the Institute for Quantum Computing in Waterloo, Ont.

$87.5-million for additional doctoral and masters' scholarships.

Aboriginals

$515-million over two years for schools, water and key community services.

$200-million for skills and training.

$400-million for social housing on reserves.

$325-million to aboriginal organizations and provinces to deliver health programs and child and family services.

Health

$500-million to expand the use of electronic health records.

Child care

Raise the level at which the National Child Benefit supplement and Canada Child Tax benefit are phased out.

Farming, food

$500-million agricultural flexibility program.

$50-million over three years to increase slaughterhouse capacity.

Arts

$200-million over two years for the Canadian Television Fund.

$60-million over two years for community theatres, libraries and museums.

Increased funding for the National Arts Training Contribution program.

$30-million over two years for magazines and community newspapers.

Tourism

$100-million over two years for “marquee festivals” and events to promote tourism.

$40-million over two years to the Canadian Tourism Commission.

$24-million to support cruise ship infrastructure along the Saint Lawrence and Saguenay rivers.

$75-million over two years for Parks Canada facilities, and an additional $75-million for national historic sites.

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