2004 Canadian Federal Budget


2004 Canadian Federal Budget was introduced by Finance Minister Ralph Goodale for the fiscal year 2004-2005 which focused on stronger economic growth and strove to establish a balanced budget. The budget was read at the House of Commons on 23 March by the Finance Minister who belonged to the Liberal Party. The 2004 Federal Budget was prepared by Goodale with significant suggestions from the Prime Minister, Paul Martin who happened to be the Finance Minister when Jean Chretien led the government. Therefore it was a joint effort of both the ministers of the cabinet.

Salient Features of the Budget 2004

It was predicted in the budget of 2004 that the economy of Canada would experience a growth of 3% in the year 2004 and 3.2% in the year 2005. The minister also declared that Canada would overcome the crisis it faced earlier in the form of SARS and BSE and create a new economy that would be self-sufficient. After this declaration Canada created 40000 new job opportunities.

Minister Goodale stuck to his point of establishing a balanced budget backed by an annual Contingency Reserve of $3 billion and other supplementary economic discretion. The minister declared the target surplus estimated for the next five years too. The estimation of the surplus was done by taking into account the fund allotted for various sectors including health care, territorial financing and other expenditures for animal husbandry.

There was a new incorporation in the budget of Canada in the year, that of introducing a greater transparency in between the Charity organizations and the Canada Revenue Agency. Again, the basic personal tax deductions were set at $8102 in 2004. Canada had already improved its living standards and Ralph Goodale promised even more improvement and growth in the economy of Canada in the budget of 2004. Canada holds the best record of providing employment opportunities to its people among all the G-7 countries.

The Fate of 2004 Canadian Federal Budget

Though the budget held a lot of promise for the country, it was not passed because the government was dissolved before the budget could receive the sanction of the parties. The country again prepared itself for another election and many of its aspects were implemented by the 2005 new Canadian Federal Budget.

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