On March 22, the Federal Minister of Finance, the Honourable Bill Morneau, presented the 2016 Federal Budget, entitled Growing the Middle Class. 

 

Bill Morneau’s first budget as Finance Minister delivered more or less as promised, highlighting themes and commitments that were raised during the 2015 election campaign and telegraphed during the last few months. As during the campaign, the Liberals focused heavily on "middle class" issues in this budget. 

 

This will be an era of government investments - The Finance Minister specifically referenced the era of great works following the Depression and the Second World War as examples of how smart investment and hard work can lead to success for middle class Canadians. 

 

As expected, the government will run a hefty deficit the next several years - $29.4 billion in 2016/17, $29 billion in 2017/18, and declining to $14.3 billion in 2020/21. The government maintains that the national debt/GDP ratio will still decline over that time.

 

The key highlight of interest to NAFA members is the government’s commitment to improve vehicle safety. In order to do so the government intends to invest $7.3 million for the next two years to improve inspection capacity and support development for cutting-edge technologies, including automated vehicles.