Finance Minister Jim Flaherty presented the "Economic
Action Plan 2014" on February 11, 2014. In line with previous
budgets and the Conservative government's objectives to promote
jobs, economic stability and growth, this year's budget
stressed fiscal management, prudent spending and "closing tax
loopholes." No major tax measures emerged from the
"lean" budget. Furthermore, there were no changes in
personal or corporate income tax rates.
In their deficit-reduction plan, the government projects a
deficit of $2.9 billion by the end of its fiscal 2015 year and a
surplus of $6.4 billion the year after. To accomplish its surplus
target, it will spread a number of spending projects over several
years, including deferring defence expenditure. The government will
raise more than $600 million per year by increasing the tax on
tobacco products.
