The budget expects a deficit of $25.9 billion for 2013, falling to $18.7 billion for 2014 and to $6.6 billion for 2015 and essentially calls for a balanced budget in 2016.
While the budget’s main focus is on jobs and the economy, the budget includes many targeted tax measures aimed at addressing what the government considers tax “loopholes” in the Canadian tax system.
Areas as diverse as tax loss trading, life insurance products, labour sponsored venture capital corporations, trusts, thin capitalization rules, targeted goods and services tax (GST) provisions, the mining industry and farm losses are all affected.
A major job-related initiative in the budget is the Canada Job Grant Program. This program could provide up to $15,000* per person or more for training. To be eligible, businesses must have a plan to train unemployed and under-employed Canadians for an existing or better job. The budget also expands and extends the temporary hiring tax credit for small businesses.
The budget also creates a new Building Canada plan, which will provide $53.5 billion over the next 10 years for provincial, territorial, and municipal infrastructure.
Read a March 2013 report prepared by the KPMG member firm in Canada: 2013 Federal Budget Highlights
*$ = Canada dollar