The first budget tabled by the new Liberal government zeroes in on infrastructure spending and new benefits for families but does so thanks to big deficits – approximately $29.4 billion this year and $29 billion next year, for a grand total of more than $100 billion over the next five years.
The plan is to revitalize a stalled economy with injections to specific industries, with infrastructure spending reaching more than $120 billion over the next 10 years, according to a press release. Over the next five years, “shovel ready” projects could dip into a $12 billion fund.
Beiseker Mayor Ray Courtman said he was disappointed to see limited detail on support for smaller municipalities.
“Smaller municipalities are really feeling the pinch in Alberta with the oil crisis the way it is. We in Beiseker have a couple industries that are very dependant on the oil industry, and it’s hurting them,” he said. “I think they should be given as much breaks and as much help as we can give them.
“Unfortunately, the federal government paid some lip service to smaller municipalities.”
Courtman said Beiseker has a number of infrastructure projects planned, but initial impressions didn’t suggest opportunities for funding.
“I don’t think we’ll qualify for very much at all. We’re preparing some shovel ready projects we can’t afford right now,” he said. “I’m writing letters to the federal and provincial government. If we get some money, we’ll be able to take that off the shelf and away we go.”
Details on how the 10-year $120 billion fund will be dispersed among municipalities has yet to be detailed by the federal government.
Jennipher Moritsugu, media relations with Canada Infrastructure, said smaller municipalities in Rocky View County could also be eligible for a Canada-wide $5 billion investment in water, wastewater and green infrastructure projects over the next five years.
Smaller municipalities will also continue to benefit from the ongoing federal gas tax fund and the goods and services tax rebate for municipalities, according to Moritsugu.
“The Government of Canada recognizes the unique infrastructure needs and challenges of Canada’s small municipalities and the critical role they play in the country’s economic, social and environmental well-being,” she said in an email to the Rocky View Weekly.
Banff-Airdrie Conservative MP Blake Richards said running up deficits to pay for infrastructure and social projects was a “huge concern.”
“I see a lot of programs that are going to be structural in nature and carry an ongoing deficit and ongoing debt. Not much will (support) the goals to stimulate the economy,” he said. “Without question, that’s a huge concern for all Canadians. For our future children and grandchildren, the magnitude of the new debts – $100 billion – that’s a significant burden for our children and grandchildren.”
Tax benefits for families with young children will also see changes under the new budget, replacing the Universal Child Care Benefit introduced by the previous government.
The new Canada Child Benefit (CCB) will see approximately nine out of 10 Canadian families receive higher benefits, according to a press release – though families earning more than $150,000 will receive less than before.
“I believe all parents need to have access to (childcare), no matter what you make,” said Janet Saliba, owner of Airdrie-based daycare centre Jump’n Jellybeans. “Parents are considering not having another child (so) childcare fees are a little less. Having two children in daycare, it’s costly, even if you’re making $100,000 or more and you do have two or three children.”
Under the CCB, families will receive up to $6,400 per child under six and up to $5,400 for children aged six to 17.
An overhaul to Employment Insurance (EI) benefits is also included in the budget, which could help Albertans affected by a stalled economy.
The EI waiting period will be reduced from two weeks to one week effective Jan. 1, 2017, while benefits will also be temporarily extended, with up to 70 weeks of coverage granted to regions hit hard by falling commodity prices.
“If I had a crystal ball, I could maybe predict the oil industry might start coming back by the end of summer. Maybe I’m an incurable optimist,” Courtman said. “But for some reason if that doesn’t happen, or if (oil companies) can’t hire back, what are those people going to do after their EI or extended EI runs out? I’m sure the federal government has wondered about that.”
“I don’t see a lot in here that will be of huge benefit to residents. There’s some details yet to be announced, and I’ll be cautiously optimistic,” Richards said. “But I think the creation of a lot of new debt are going to see our taxes increased. For middle-class people and small businesses, that is a huge, huge concern that I think overshines anything in terms of the positives.
“I don’t think any of it deals and addresses the huge concern, which is trying to see people get back to work in the natural resources industry.”
Other highlights of Budget 2016 include a $1 billion investment into the development of clean energy, $8.4 billion over five years to support Indigenous Peoples and an increase to Canada student grants.
