Priorities

During the global economic crisis, the Government of Prime Minister Stephen Harper is taking action to protect Canadians’ jobs, incomes and savings and prepare the country for greater prosperity when the recession ends and recovery begins.  Canada’s Economic Action Plan is focussed on four main priorities.

Strengthening our Financial System

The global recession will end when trillions of dollars in private capital that have been sidelined by uncertainty once again begin flowing through international financial markets.  In the meantime, governments must step in to ensure access to credit.  Our Economic Action Plan provides up to $200 billion to ensure consumers have reasonable access to credit and businesses can obtain the financing they need to invest, grow and create jobs.

Supporting Families and Communities

Our Economic Action Plan builds on the Government’s earlier tax reductions such as cutting the GST from seven to five percent by providing another $20 billion in personal income tax relief.  The Plan helps the hardest hit Canadians by providing over $8 billion to extend Employment Insurance benefits, fund job training programs and freeze EI rates.  To help communities and regions that depend on hard-hit sectors like auto, forestry and manufacturing, the Plan provides a further $7.5 billion to protect jobs and help industries adapt and compete in the global markets of the 21st century.

Stimulating our Economy

Working in close co-operation with the provinces and territories, the Government has embarked on the largest infrastructure renewal program in half a century.  Our Economic Action Plan is stimulating Canada’s economy to preserve and create jobs by speeding up investment in infrastructure that will support our future prosperity, including roads, bridges, transit systems, broadband internet access, scientific and technological research and development, and clean energy projects.  Further stimulus and job creation comes from a $7.8 billion investment in housing construction, including social housing, energy retrofits, financial assistance for first time home buyers and the Home Renovation Tax Credit, which are providing up to $1,350 in tax relief for an estimated 4.6 million Canadian families.

Sustaining our Fiscal Advantage

Canada entered the global recession with a strong record of balanced budgets, the lowest debt-to-GDP ratio in the G7 and the soundest banking system in the world.  Our Economic Action Plan maintains Canada’s fiscal advantage by using temporary, short-term stimulus spending as a bridge to recovery, allowing a return to balanced budgets when growth returns.

Staying the Course on Long-term Priorities

While the Government is focussed on guiding Canada through the global economic crisis, it is also attending to our other important long-term priorities, including developing a clean energy economy, expanding international trade, rebuilding the Canadian Forces, improving food and product safety regulations, cracking down on gun, gang and drug crime, asserting our sovereignty in the Arctic and strengthening Canada’s economic union.