Feds dip into contingency fund to pass balanced budget

Minister of Finance Joe Oliver tabled a balanced federal budget Tuesday afternoon that projects a $1.4-billion surplus for 2015-16, but dipped into the government's $3-billion contingency fund to do it – cutting it to $1 billion by 2019.

The election year budget includes a doubling of the Tax-Free Savings account annual contribution limit from $5,000 to $10,000. The increase is effective for 2015 and subsequent years.

The budget also includes a reduction of the small business tax rate to nine per cent by 2019 – putting an estimated $2.7 billion back into the pockets of small business owners between now and 2019–20.

The budget extends compassionate-care benefits – for Canadians who are caring for sick family members – to six months.

It also reduces the minimum withdrawal factors for Registered Retirement Income Funds to permit seniors to preserve more of their retirement savings.

The Canadian military budget will expand by $11.8 billion over 10 years, starting in 2017.

The RCMP, the Canadian Security Intelligence Service and the Canada Border Services Agency will receive almost $300 million over five years for their anti-terror efforts.

“Economic Action Plan 2015 will create jobs, growth and long-term prosperity,” Oliver said in a press release. “It is a balanced budget, just as we promised, and it cuts taxes for hard-working individuals and families.

It is a prudent and principled plan that will see Canadians more prosperous, more secure, and even more confident in our country’s place in the world.

Canadians can rest assured that under the strong leadership of Prime Minister Stephen Harper, Canada’s fiscal house is in order.”