The Liberals have pledged that if the budget does not meet their expectations, expectations they have not spelled out in detail, they will bring the minority government down.
That could result in Canadians going to the polls, or a coalition government led by the Liberals. However, after the details of the new budget were revealed, most analysts were of the opinion that the Liberals are very unlikely to defeat the government over this budget.
Liberal leader Michael Ignatieff had warned the budget would need to include stimulus spending proportional to the economic crisis being felt around the globe and include measures to protect vulnerable Canadians.
After leaking details of the budget all week, including that Canadians can expect two year’s of budgets with deficits totalling $64 billion dollars, the Conservatives unveiled the full details of their spending. This budget follows almost two months after their first budget which sparked a parliamentary crisis that led to the suspension of parliament for nearly two months.
That budget included cuts to party financing that would have eliminated monies all parties except the Conservatives rely on to wage election campaigns. At that time the parties criticized the budget for lacking appropriate stimulus spending.
The current proposed budget, with a projected deficit of $33.7 billion, however includes $18 billion in stimulus spending, $3 billion in tax cuts and monies for a variety of other projects from railways to recreation centres.
Among the tax cuts is an increase in the income a person can earn without being taxed, to $10,320 from $10,100 and giving homeowners up to $1,350 in tax credits for home renovations for fences, driveways, insulation, etc.
The budget also extends unemployment insurance by 5 weeks to 50 weeks.
On Wednesday parliament will vote on whether to accept or reject the budget. Canada’s two smallest opposition parties, the New Democratic Party and the Bloc Quebecois, have both vowed to reject it.
