Canada’s Economic Action Plan has been effective in creating and maintaining jobs and protecting the well-being of Canadians. Canada has now more than fully recouped all of the employment and output losses that occurred as a result of the recession. Moreover, the private sector is once again the engine of growth and job creation, allowing the Government to wind down stimulus and focus on long-term priorities.
The Government will build on the success of the Economic Action Plan. The Next Phase of Canada’s Economic Action Plan—A Low-Tax Plan for Jobs and Growth helps lay the foundation for long-term prosperity by supporting key drivers of economic growth—innovation, business investment, families, communities, education and training—in a responsible manner that preserves Canada’s fiscal advantage.
The Government is building on a strong economic record. Since 2006, the Government has reduced taxes, tariffs and red tape to improve incentives for investment and innovation. It has fostered innovation by making substantial investments in research and development, and has taken action to encourage education and skills development. The Government’s actions include major tax reductions, historic investments in infrastructure, a more streamlined regulatory environment and targeted measures to safeguard financial stability. It has reduced the welfare wall and created opportunities for more Canadians to participate in the labour force, while maintaining a strong record of fiscal management.
These policy actions have garnered widespread international recognition. For example, The Economist magazine’s Economist Intelligence Unit recently ranked Canada as the best place in the Group of Seven (G-7) to do business for the next five years.
On fiscal stabilization, the government appropriately charts a course to fiscal balance over the medium term. This would put net debt-to-GDP ratio on a downward trajectory from already low levels, maintaining Canada’s standing as [having] the strongest fiscal position in the G-7.
— International Monetary Fund,
Canada: 2010 Article IV Consultation,
In an increasingly competitive global environment, to remain a leader on the world stage, Canada needs to maintain its low-tax plan that leaves more money in the hands of families and stimulates the investment, innovation and economic growth that ultimately create more high-wage jobs for Canadians. It needs to encourage growth and innovation through investments in research and education, streamlined regulations and free trade agreements with advanced and emerging economies. It needs to support families and communities to ensure that all Canadians benefit from the opportunities and wealth that long-term growth creates. And Canada needs to remain focused on maintaining its strong fiscal management and sound financial system to foster the long-term economic growth that will provide all Canadians with the opportunity to contribute to our continued prosperity.
To that end, the Next Phase of Canada’s Economic Action Plan will take steps to advance the Government’s long-term objective of building a stronger economy that generates high-wage jobs.
The Next Phase of Canada’s Economic Action Plan—A Low-Tax Plan for Jobs and Growth is centered on four strategic areas:
By focusing on the drivers of growth, the Next Phase of the Economic Action Plan will help individuals, entrepreneurs and businesses create the wealth Canada needs to invest in health care, infrastructure and other services that promote vibrant communities and maintain our high quality of life. Budget 2011 introduces a number of targeted measures to support these objectives.