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March 24, 2004

Pontifications on the the budget are most often long, dry, clerical, and generally the ideal tonic for the sleep deprived.  So, in the case of one of the most boring and uneventful budgets in years, comments will remain as relevant as possible.

First it is absolutely amazing that the budget surplus came in at $5.5 billion, when Finance Minister Ralph Goodale's posturing at the end of January suggested that he wasn't even sure that there would be money for the promised $2 billion infusion into health care, let alone the potential for a surplus.

The establishment of the Office of the Comptroller General of Canada to oversee all government department spending is a measure that is baffling by the fact that it wasn't already in place for the past decade.

There was new monies invested into health to create a new Canada Public Health Agency and new Chief Public Health Officer, but there were no new initiatives to reduce waiting lists or increase monies directed towards more nurses and doctors, other than the $2 billion that Jean Chretien promised long before Paul Martin became Prime Minister.

The $7 billion GST rebate over the next decade is a nice gesture for municipalities, but a far cry from Paul Martin's guaranteed promise of providing a portion of the gas tax.  Only time will tell how long this "down payment" substitute will be in place.

The $1 billion to farmers and $680 million to cattle producers are strong and necessary investments, and the government should be commended for backing up their promise of assistance with solid financial support.

The student funding announcements were lacklustre and disappointing in their scope.  The new Canada Learning Bond allows families earning less than $35,000 annually to qualify for up to $2,000 for each child born after 2003.  The money will only be seen in $100 increments up until the age a fifteen, however...hardly a windfall by today's tuition costs (never mind 15 years from now). 

Also, changes to the student loan program cut the contributions expected from middle-income families and raised loan forgiveness ceilings for people struggling to repay loans after graduation, although this will not solve the rapidly rising tuition fees spanning across the country.  More monies provided to provinces so that universities could provide additional resources would have been better placed to relieve student financial burdens.

What about Martin's previous "commitments" to Aboriginals?  What about new monies for the military?  Where is the money for Martin's assault on homelessness?  These are just a few of the many policy areas that Mr. Martin identified as priorities, only to have them show up as little more than a Throne Speech footnote rather than a budgetary expenditure.

In closing, this budget was as about exciting and dynamic as the man who delivered it, which is an apt analogy.  If this is the foundation that the Liberals plan on formulating their election platform upon, then Canadians should be looking to the other parties for fresh, forward-thinking and exciting ideas in the realm of public policy.

Comments? jonathan@tdhstrategies.com