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Points of View
Some reactions to the federal budget

Although it was called a budget for everyone, it appears that almost everyone is finding faults in the budget; here is a rundown of their positions.

Bankers and Economists

The majority of bankers and economists subscribe to free market economic theories and view heavily centralized economies as inefficient. As such, they argue that government surpluses would better justify tax cuts. They feel that more money in the pockets of Canadian consumers fuels economic growth.

Aboriginal Leaders

The third world conditions experienced on many of Canada’s reserves, and for many urban First Nations’ people, was one of the preoccupations of the budget. But, while Indian Affairs Minister Robert Nault said it was “a huge announcement,” the Assembly of First Nations spokesperson countered, “the socio-economic gap is still not closing quickly enough.” This wasn’t the level of investment most native leaders were hoping for.

Business People

Small and medium-sized businesses are satisfied with the tax relief they will receive from the budget. While some wished for more broad tax relief, the targeted tax concessions make the majority better off.

Environmentalists

The government has devoted a hefty sum to environmental initiatives – with $2 billion earmarked for emissions targets – but there are very few specifics defined in the budget. Most environmental lobby groups are disappointed with the government’s failure to identify specific areas and targets for the money, and are worried that there is little in the way of real commitments.

Political Parties

As expected, the competing parties doled out criticism for the budget.

The New Democratic Party (NDP) commented that the budget does not adequately address Canadian social issues, stating, “most people who are homeless are going to be homeless at the end of the day.”

The Progressive Conservatives (PC) felt that the budget had no central focus and was mostly about handcuffing Paul Martin. Leader, Joe Clark stated, “there's a very strong element of revenge here…getting back at Paul Martin…limiting his flexibility if he becomes prime minister.”

The Bloc Québécois felt the budget focussed on the wrong priorities; leader Gilles Duceppe stated, "all in all, they're not responding to people's needs."

The Alliance Party argued that the spending increase was a return to the wasteful governments of the past. Its leader, Stephen Harper complained, “it's an old-fashioned tax-and-spend Liberal budget."

Health and Welfare Sector

Health and welfare programs received large cash infusions. But, the majority opinion is that it will take some time to reduce critical shortages in both sectors. It is widely viewed that there will need to be even more budget increases before they can repair the damage done by cutbacks over the previous decade.

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In Perspective