Finance Minister Jim Flaherty unveiled the Conservatives’ first budget as a majority government on Monday, warning that programs will be cut in order to keep a campaign promise to eliminate the federal deficit by the 2014-15 fiscal year. Without being specific, Flaherty announced that the government plans to conduct a wide review of all operations. In doing so, they promise to find $4 billion in spending cuts every year. The budget also followed through on another campaign promise: the elimination of the $2-per-vote subsidy, which will be phased out in 51 cent increments starting in April 2012. Quebec will also receive a $2.2 billion transfer according to an HST compensation agreement. The rest of the budget was a reintroduction of the document tabled before the House of Commons in March, just weeks before the government was found in contempt of Parliament by the Opposition and an election was called.
Flaherty warns of program cuts in federal budget
Promises to eliminate deficit one year ahead of schedule
FILED UNDER: Budget 2011