March 2004

2004 Federal Budget

Minister of Finance Ralph Goodale presented his first Budget to Parliament on March 23, 2004 and placed an emphasis on “financial responsibility and integrity”. This was also the first Budget under Paul Martin as Prime Minister and it is widely expected that the Budget will be followed in short order by a federal election. Several of the initiatives described in the Budget (including the aid package aimed at cattle farmers, the planned assistance to municipalities and the additional health care funding for the provinces) had been announced before the Budget. Aside from the measures already announced, there is very little in the way of new spending measures and promises of future tax relief that would normally be found in a pre-election Budget. Balanced or better budgets are forecast for 2003-04, 2004-05 and 2005-06 and the use of contingency reserves is restored. The Minister of Finance introduced his Budget speech as follows:

"Today, I am presenting a focused budget plan with two clear objectives: first, to demonstrate unequivocally the principles of financial responsibility and integrity; and second, to begin to give tangible shape to the goals presented in the Speech from the Throne. We are making the initial payments that we can afford to make, now. In future budgets and future years, we will build on the steps being taken today."

Readers are urged to consult their professional advisors prior to acting on the basis of material in this newsletter. If you have any questions regarding the content of this newsletter, please contact Crawford, Smith & Swallow. Copies of the newsletter in PDF format are available on our website.