Archived - Overview
Canadians have reason to be confident about the
future. We have the strongest fiscal position of any
Group of Seven (G7) country. And the Government
is providing leadership at home and abroad based on its
long-term economic plan, Advantage Canada.
The October 2007 Economic Statement took
important steps on this plan by providing broad-based tax
relief of $60 billion over this and the next
Budget 2008 will build on this by:
- Cutting the federal debt by $10.2 billion in
- Reducing taxes, including a new
Tax-Free Savings Account and help for
manufacturers and processors.
- Managing spending responsibly.
- Investing in the future of Canada and showing
leadership at home and abroad.
These actions by the Government, along with our solid
fundamentals, will support Canada’s economy as it
faces uncertain times arising from the U.S. economic
slowdown and global financial turbulence.
Tax-Free Savings Account (TFSA)
Canadians need all the help they can get to
The TFSA will allow Canadians to watch their savings
grow tax-free throughout their lifetimes.
Canadians can contribute up to $5,000 every year to
their TFSA and carry forward unused room to future
years. There is no lifetime limit and no tax on
investment income earned, including capital gains.
The TFSA can be used any way you like—for
example, to buy a new car, pay for an emergency,
finance a child’s wedding or bankroll a dream
Maintaining Strong Fiscal Management
Budget 2008 demonstrates leadership in the face of
recent economic challenges in ways that enhance our
Strengthening Canada’s Tax Advantage
- For 2007–08, the Government plans to reduce
the federal debt by $10.2 billion.
- By 2012–13, total debt reduction since the
Government took office will exceed
- As of 2009–10, the Tax Back Guarantee will
account for $2 billion in personal income tax
reductions financed from debt interest savings.
- The Government has completed the first round of its
reviews of departmental programs and spending to ensure
taxpayers’ dollars are spent effectively.
- The management and governance of Employment
Insurance will be improved through the creation of
a new Crown corporation.
Budget 2008 builds on decisive and timely tax
reductions for individuals, families and businesses
introduced since 2006.
- A new Tax-Free Savings Account with an annual
contribution limit of $5,000 to help Canadians
- A further $1 billion in support for
Canada’s manufacturing sector with an additional
three years of accelerated capital cost allowance
treatment for new investment in machinery and
- Improvements to the scientific research and
experimental development program.
- Reductions in the tax compliance burden on
- Increased withdrawal choices for holders of life
Tax Relief Today…
Actions taken by the Government since 2006 will
provide $21 billion in incremental tax
relief—equivalent to 1.4 per cent of
Canada’s economy—to Canadians and
Canadian businesses this year.
The Government will have reduced the overall tax
burden for Canadians and businesses by almost
$200 billion by the end of 2012–13.
Investing in the Future
The world is changing. Budget 2008 helps Canada
compete on the world stage with investments in people,
knowledge, communities, traditional industries and
Investing in People
Investing in Knowledge
- $350 million for a new Canada Student Grant
Program, beginning in 2009, and rising to
$430 million by 2012–13.
- $123 million over four years to streamline and
modernize the Canada Student Loans Program.
- $25 million over two years to establish a new
scholarship award for top Canadian and international
doctoral students, dedicated to the memory of former
Governor General Georges Vanier.
- $3 million over two years for Canadian
recipients of Canada Graduate Scholarships who wish to
- $21 million over two years to establish up to
20 university research chairs to attract top science
- $20 million to the Canada Gairdner
International Awards for health research.
- $60 million per year to fully exempt the first
$3,500 of earned income from the Guaranteed Income
Supplement calculation to support seniors.
- $22 million over two years to modernize and
speed up the immigration system.
Communities and Traditional Industries
- $80 million per year to Canada’s three
university granting councils for research.
- $15 million per year for the Indirect Costs of
- $140 million for Genome Canada.
- $250 million over five years for an Automotive
Innovation Fund to support research and
development investments in the automotive sector.
- $90 million to extend the Targeted Initiative
for Older Workers to 2012.
- $72 million over two years for farm programs
and to improve access to $3.3 billion in advance
- $22 million over two years to streamline and
improve the environmental regulation of
Community Development Trust
This new assistance is above and beyond the
Community Development Trust announced in
January 2008, which will provide $1 billion
to provinces and territories to assist workers and
communities that are experiencing hardship due
to international economic volatility.
Investing in Infrastructure
- Making the Gas Tax Fund, which will reach
$2 billion in 2009–10, a permanent measure
to help municipalities finance their long-term
- $500 million in support of capital investments
in public transit.
- Announcing the establishment of PPP Canada Inc.
to support public-private partnerships.
A Sound and Efficient Financial Sector
- Advancing the Capital Markets Plan for Canada,
including the recent launch of an expert panel
on securities regulation.
- Strengthening the ability of the Bank of Canada to
support financial stability and updating treasury risk
guidelines for Crown corporations.
Leadership at Home
Supporting People in Need
Budget 2008 commits to helping those who need the care
and support of their fellow Canadians with:
- $110 million to the Mental Health Commission
of Canada to develop best practices to help those in
- $282 million over this and the next two years
to expand the Veterans Independence Program to support
the survivors of veterans.
Protecting the Health and Safety of Canadians
Budget 2008 helps modernize and strengthen
Canada’s safety systems for food, consumer and
health products with:
Strengthening Partnerships With
- $170 million over two years to improve the
safety of food and natural health products and to
heighten awareness of the links between pollution and
- New tax measures to reduce the availability of
contraband tobacco products.
The Government has made significant progress in
supporting Aboriginal Canadians. Budget 2008 builds
on this progress by allocating:
A Vision for a New North
- $70 million over two years for measures to
foster Aboriginal economic development.
- $70 million over two years to improve First
Nations education outcomes.
- $147 million over two years to improve First
Nations and Inuit health outcomes.
- $43 million over two years for
prevention-based models of child and family services on
- $330 million over two years to improve access
to safe drinking water in First Nations.
Budget 2008 helps create new economic opportunities
in the North with:
Ensuring a Cleaner, Healthier Environment
- A 10-per-cent increase in the Northern Residents
Deduction to attract skilled workers to northern
- $34 million over two years for geo-mapping of
- A one-year extension of the Mineral Exploration
Budget 2008 includes new measures to strengthen
and implement Canada’s ecoACTION plan for
clean air and water with:
- $66 million over two years to set up the
regulatory framework for industrial air emissions.
- $250 million for research and demonstration of
carbon capture and storage.
- An increased capital cost allowance rate for carbon
- $300 million to support nuclear energy and
maintain nuclear safety.
- Expanded tax incentives for clean energy
- $21 million over two years to improve
environmental law enforcement.
Investing in Culture and Sports
Budget 2008 sustains our cultural institutions and
invests in sports with:
- $25 million to make the 2010 Olympic and
Paralympic Torch Relays a symbol of national
- $24 million over two years to support summer
- $9 million over two years for capital and
operating investments in Canada’s National
Tackling Crime and Bolstering Security
Budget 2008 helps make Canadians safe and secure in
their homes and on streets with:
- $400 million for provinces and territories to
recruit 2,500 new police officers.
- $122 million over two years to implement a new
vision for the federal correctional system.
- $32 million over two years to enhance the work
of the Public Prosecution Service of Canada.
- $30 million per year to the National Crime
Canada First Defence Strategy
Protecting Canadians and Canada is fundamental.
Budget 2008 reinforces this responsibility with:
- Stable, predictable new funding to support the
Canada First Defence Strategy with annual increases in
defence spending of 2 per cent starting in
2011–12, providing an additional
$12 billion over 20 years.
- $43 million over two years to help the
Communications Security Establishment keep pace with
new advances in technology.
Canadians are compassionate and generous. Budget 2008
provides the necessary resources and direction to help
Canada reassert its influence in global affairs with:
Improving Our Borders
- Funds to deliver on our promise to double
international assistance to $5 billion by
- Funds to make Canada the first G8 country to meet
its commitment to double aid to Africa.
- $450 million over three years to the Global
Fund to Fight AIDS, Tuberculosis and
- $100 million in additional funds for
reconstruction and development in
- $50 million over two years to launch a
Development Innovation Fund.
- $89 million over two years to add new staff,
embassies and missions to enhance Canada’s
Budget 2008 invests in borders with:
- $75 million over two years to fund Canada
Border Services Agency operations.
- New electronic passports for Canadians, to be
introduced in 2011, which will be valid for 10
- $14 million over two years to expand the joint
Canada-U.S. NEXUS program for low-risk
- $26 million over two years to facilitate the
processing of visas and enhance border security
through the use of biometric data.
- $15 million over two years to establish a
permanent facility to enhance security in the Great
Lakes/ St. Lawrence Seaway region.
- $29 million over two years for initiatives
under the Security and Prosperity Partnership of North
How Can I Get More Information on Budget 2008?
Information is available on the Internet
or by phoning:
(TTY for the speech and hearing impaired/deaf)
You can also obtain copies of this brochure
and other budget documents from the:
Department of Finance Canada
Room P-135, West Tower
300 Laurier Avenue West
Ottawa, Ontario K1A 0G5
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