1990 Canadian federal budget
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 | |
| Presented | 20 February 1990 |
|---|---|
| Country | Canada |
| Parliament | 34th |
| Party | Progressive Conservative |
| Finance minister | Michael Wilson |
| Total revenue | CA$119,685,000,000 |
| Total expenditures | CA$153,584,000,000 |
| Deficit | CA$33,899,000,000 |
|
‹ 1989 1991› | |
The Canadian federal budget for fiscal year 1990–91 was presented to the House of Commons of Canada by finance minister Michael Wilson on 20 February 1990. It was the second budget after the 1988 Canadian federal election. Main estimates were tabled in the House of Commons on 22 February 1990.[1]
The 1990 budget did not introduce a major tax change, as income taxes were reformed in prior years and the Goods and Service tax was scheduled for implementation on January 1, 1991.
Although not part of the 1990 budget, three major tax changes are implemented as of January 1, 1991:[2]
- The individual surtax on high-income is increased to 5% of federal taxes in excess of $12,500 (instead of 3% of taxes owed over $15,000);
- The Large Corporation Tax introduced in April 1989 is increased to 0.2% of taxable capital over $10 million (instead of 0.175%);
- A new Refundable Goods and Services Tax Credit of $190 per adult replaces the Refundable Sales Tax Credit.
Expenditures
Expenditure Control Plan
The 1990 budget sets out a control plan for expenditures and was predicted to yield $2.8 billion in savings in fiscal year 1990-1991[3] and $3.3 billion in fiscal year 1991-1992. This control plan complements the expenditure reductions of December 1989. Most government transfers to individuals, including old age pensions, child allowances, veterans' benefits and unemployment insurance, were not included.
5%-growth
Some programs were constrained to a 5%-annual growth until 1992:[3]
- Science and Technology (National Research Council, Canadian Space Agency, Defence Industry Productivity program, Scholarships...);
- Indian and Inuit programs;
- Canada Assistance Plan (CAP, a cost-sharing program consisting of transfers to province for social assistance programs);
- Defence spending;
- Foreign aid
Programs frozen until 1992
Some programs are frozen altogether:[3]
- Established Programs Financing (EPF, transfers to provinces for health and post-secondary education);
- Funding to the CBC for acquisition of capital equipment. Previously-announced increases are cancelled;
- Telefilm Canada;
- Export Development Corporation;
- Marine Atlantic (ferry services in Atlantic Canada).
Budget cuts
Other programs see their funding cut:[3]
- Grants and contributions by the Secretary of State, the Department of Multiculturalism and Citizenship and the Department of National Health and Welfare;
- Social Housing (through the Canada Mortgage and Housing Corporation);
- Funding for small craft harbours.
Several programs are terminated altogether:[3]
- Incentives for exploration of natural resources provided by the Canadian Exploration Incentives Program (CEIP) are eliminated after February 19, 1990. The CEIP was introduced in 1988 to help resource companies raise capital following the market crash of 1987.
- The OSLO Project of development of oil sands in Northeastern Alberta;
- The Polar 8 Project.