Dateline: 12/11/01
Finance Minister Paul Martin's December 10, 2001 federal budget responds to the immediate problems from the global economic slowdown and terrorism attacks in the United States, but also makes an effort to stick to the Liberal government's long-term economic plan.
Security Measures in 2001 Federal Budget
The government is putting $7.7 billion over the next five years into improving the economic and personal security of Canadians, including money to air security, the military and strengthening border security:
- intelligence and policing - $1.6 billion
- improved screening of entrants to Canada - $1 billion
- emergency preparedness and military deployment - $1.6 billion
- air security - $2.2 billion
- Canada-U.S. border initiatives - $1.2 billion
Strategic Investments in Federal Budget 2001
To provide some economic stimulus and to try to keep on track with the government's long-term economic goals, the government is also putting money into the following areas.
- health
- skills, learning and research
- strategic infrastructure and the environment
- aboriginal children
- international assistance
Financial Management in Federal Budget 2001
Fiscal projections provided in the 2001 budget are based on average private sector economic forecasts.
- The budget projects economic growth of 1.3 percent in 2001; 1.1 percent in 2002. Modest growth is expected in the first half of 2002, with a "solid rebound" in the second half of the year. By 2003, growth is projected to be 3.9 percent.
- Balanced budgets or better are projected for fiscal year 2001-02 and the following two years.
- Program spending is expected to increase 9.4 percent in 2001-02. Three-quarters of the increase is for cash transfers to the provinces and territories for health care, for funding security measures and for employment insurance and elderly benefits.
- The government will use part of the Contingency Reserve each year until 2003-04 to handle fiscal pressures from the economic slowdown and the terrorist attacks.
- No debt will be paid down this year.
