June 6, 2011
“Today I am presenting the essential commitments our Government made on
The Honourable Jim Flaherty
Minister of Finance
The Honourable Jim Flaherty, Minister of Finance, tabled the first
federal budget of the Conservative majority government today. The Budget includes all of the measures that
were introduced in the March 22,
2011 budget. The March 22, 2011
budget was not adopted by Parliament before its dissolution on March 26, 2011.
The Budget provides an update of the government’s projected budgetary
deficits. The government now projects
that the deficit in 2010-11 will be $36.2 billion (as compared to $40.5 projected
in the March 22, 2011 budget) and that the deficit in 2011-12 will be $32.3
billion (as compared to $29.6 billion projected in the March 22, 2011
budget). The government now projects
that by reducing expenses, a surplus will be achieved in 2014-15, one year
earlier than was projected in the March 22, 2011 budget.
The Budget includes a provision in 2011-12 for $2.2 billion in support
of a satisfactory agreement between Canada and Quebec on sales tax harmonization. It also provides for the gradual elimination
of the per vote allowance paid to political parties by 2015-16.
The Budget reintroduces all of the tax measures announced in the March
22, 2011 budget, and
does not introduce any additional tax measures. For a detailed
discussion of the March 22, 2011 budget measures, see our Budget Briefing 2011. The Budget
provides that all of the measures in the March 22, 2011 budget that were to be
effective on the “Budget Date” are to be effective on March 22, 2011.
To access the Budget and related documents, click here.
If you have any questions or require additional analysis of the
Budget’s tax measures, please contact any member of our Tax Department.