| Budget of the Canadian Federal Government | |
| Year: | 1996 |
| Country: | Canada |
| Previous Budget: | 1995 Canadian federal budget |
| Previous Year: | 1995 |
| Next Budget: | 1997 Canadian federal budget |
| Next Year: | 1997 |
| Presented: | 6 March 1996 |
| Parliament: | 35th |
| Party: | Liberal |
| Minister: | Paul Martin |
| Total Revenue: | 149.889 billion |
| Total Expenditures: | 158.608 billion |
| Deficit: | $8.719 billion[1] |
The Canadian federal budget for fiscal year 1996–97 was presented by Minister of Finance Paul Martin in the House of Commons of Canada on 6 March 1996.[2] It is the first Canadian federal budget that was identified with an unofficial subtitle: Securing the Future.
Incentives for investments in Labour-sponsored venture capital corporation (LSVCCs) are tightened:
The budget proposes to remove the 7-year limit on the carry-forward of unused RRSP room. Limits for RRSP contributions are frozen until 2003 and legislated through 2005, and the age limit for contributions is to be reduced from 71 to 69.
The maximum amount of the Working Income Supplement (WIS) was increased to $750 in July 1997 and $1,000 in July 1998.
Child support payments prescribed by court orders or agreements made after 30 April 1997 will no longer be deductible for the payer and included in the income of the recipient. Most payments made under agreements made before 1 May 1997 are not affected (under certain conditions). Spousal support payments are not affected by the change.[3] The measure is hailed by the Official Opposition.[4]
The budget announced several enhancements to measures assisting higher-education students:
The budget extends the capital surtax on banks by a year (until 31 October 1997) and life insurance companies by 3 years (until the end of 1998).
The budget announced further $1.9 billion cuts to program spending by 1998-99. Cumulative expenditures reductions for the period 1994-95 to 1998-99 are expected to amount to $79 billions. Most notably:
The governments also commits to further privatizations and improve commercialization of federal operations. Alternative service delivery is also announced with three new service agencies to be set up:
The previous budget introduced the Canada Health and Social Transfer (CHST) which replaced both the Established Programs Financing and the Canada Assistance Plan fiscal transfers.
The 1996 budget announced long-term funding for the CHST:
The government also announced he would set up a Health Services Research Fund with $65 millions in funding over 5 years.
The main provisions of the budget (except tax measures) were included in the Budget Implementation Act, 1996 (C-31) which received royal assent on 20 June 1996.
| Party | width=60px | Yea | width=60px | Nay | width=60px | Abstention | width=60px | Absent | |
|---|---|---|---|---|---|---|---|---|---|
| 115 | 0 | 30 | 31 | ||||||
| Bloc Québécois | 0 | 22 | 30 | 1 | |||||
| Reform | 0 | 28 | 0 | 23 | |||||
| New Democratic | 0 | 4 | 0 | 5 | |||||
| Progressive Conservative | 0 | 0 | 0 | 2 | |||||
| Independents | 0 | 0 | 0 | 4 | |||||
| Total | 115 | 54 | 60 | 66 | |||||
Income tax measures announced in the budget were implemented through Bill C-92 which received royal assent on 25 April 1997.
| Party | width=60px | Yea | width=60px | Nay | width=60px | Abstention | width=60px | Absent | |
|---|---|---|---|---|---|---|---|---|---|
| 99 | 0 | 28 | 50 | ||||||
| Bloc Québécois | 0 | 17 | 29 | 5 | |||||
| Reform | 0 | 17 | 0 | 34 | |||||
| New Democratic | 0 | 1 | 0 | 8 | |||||
| Progressive Conservative | 0 | 0 | 0 | 2 | |||||
| Independents | 0 | 0 | 0 | 5 | |||||
| Total | 99 | 35 | 57 | 104 | |||||