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The Honourable William Morneau, Minister of Finance, tabled the Government’s 2017 Federal Budget (Budget 2017) on 22 March 2017 (Budget Day). Taxand Canada provides an analysis.
Compared to last year’s budget, which included major increases to programme spending and tax expenditures, Budget 2017 has little new money for program spending or bold tax initiatives. Government policy options are constrained by a combination of a sluggish economy, deficits from previous spending commitments, and potential tax changes from the Trump administration in the United States.
Budget 2017 focuses on building a strong middle class through innovation. The innovation and skills plan includes key goals: having the most skilled, talented, creative and diverse workforce in the world; encouraging world-leading discovery and innovation; better supporting Canadian innovators; and growing Canadian businesses to compete worldwide. Key spending priorities include lifelong skills training, innovation superclusters, and clean technologies. Budget 2017 also invests in communities, in particular by implementing the Canada Infrastructure Bank, enhancing public transit, funding green infrastructure, funding additional childcare spaces, implementing a new national housing fund, and investing in transportation infrastructure..
Discover more: Canadian Federal Budget 2017
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The tax measures included in Budget 2017 focus on the key themes of enhancing the integrity of the tax system and improving its efficiency and effectiveness. It is notable that no changes to the capital gains inclusion rate or treatment of stock options were included in Budget 2017.