The Canadian federal budget of 2004 was a

budget A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmenta ...

for the

Government of Canada The government of Canada (french: gouvernement du Canada) is the body responsible for the federal administration of Canada. A constitutional monarchy, the Crown is the corporation sole, assuming distinct roles: the executive, as the ''Crown ...

. It was read in the

House of Commons of Canada The House of Commons of Canada (french: Chambre des communes du Canada) is the lower house of the Parliament of Canada. Together with the Crown and the Senate of Canada, they comprise the bicameral legislature of Canada. The House of Common ...

on March 23, 2004 by

Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...

Ralph Goodale Ralph Edward Goodale (born October 5, 1949) is a Canadian diplomat and retired politician who has served as the Canadian High Commissioner to the United Kingdom since April 19, 2021. Goodale was first elected in 1974 as the member of Parliame ...

of the governing

Liberal Party The Liberal Party is any of many political parties around the world. The meaning of ''liberal'' varies around the world, ranging from liberal conservatism on the right to social liberalism on the left. __TOC__ Active liberal parties This is a li ...

. It was prepared by Goodale with significant input from Prime Minister

Paul Martin Paul Edgar Philippe Martin (born August 28, 1938), also known as Paul Martin Jr., is a Canadian lawyer and politician who served as the 21st prime minister of Canada and the leader of the Liberal Party of Canada from 2003 to 2006. The son o ...

, who had previously served as Minister of Finance in the government of

Jean Chrétien Joseph Jacques Jean Chrétien (; born January 11, 1934) is a Canadian lawyer and politician who served as the 20th prime minister of Canada from 1993 to 2003. Born and raised in Shawinigan Falls, Quebec, Chrétien is a law graduate from Uni ...

. The budget contained few surprises: most major initiatives had been announced long beforehand. These included $2 billion for health care, money for municipalities, and $1 billion to help livestock farmers harmed by the

Mad Cow Bovine spongiform encephalopathy (BSE), commonly known as mad cow disease, is an incurable and invariably fatal neurodegenerative disease of cattle. Symptoms include abnormal behavior, trouble walking, and weight loss. Later in the course of t ...

crisis. Government spending was set to increase at the same rate as Gross domestic product (GDP) over the next few years with any surplus going to pay down the national debt.

Taxes

Personal income taxes

* The Education Tax Credit is extended to individuals pursuing post-secondary education that is related to their current employment (if not already reimbursed by the employer) ;p. 329 * The budget allows caregivers to claim the Medical Expense Tax Credit on expenses made on the behalf of dependent relatives.p. 328 * Enhancement of the

Canada Education Savings Grant The Canada Education Savings Grant (french: Subvention canadienne pour l’épargne-études, CESG) is part of a Government of Canada program, administered through Employment and Social Development Canada, to assist with savings for Canadian children ...

: matching contribution rate is enhanced for the first $500 of contributions made by low-income families;p. 369-371 * Creation of the

Canada Learning Bond The Canada Learning Bond (french: Bon d'études canadien, CLB) is a grant paid by the government of Canada to assist low-income families with saving money for their children's post-secondary education. The CLB relies primarily on the National Chi ...

, effective 1 January 2004 for children born on or after that date. The grant of up to $2,000 (over the child's lifetime) is available for families entitled to the National Child Benefit.p. 367

Corporate income taxes

* Increase in the small business deduction limit: the small business deduction (SBD) limit is increased to $300,000 in 2005 and subsequent years instead of $275,000. The SBD limit was gradually increased in the 2003 Canadian federal budget and at the time was supposed to reach $300,000 in 2006 ;p. 329 * Non-capital losses carry-forward extended to 10 years: the budget extends the loss carry-forward period from 7 to 10 years for non-capital losses.p. 331 * Faster depreciation of computer equipment: for computer equipment acquired after 22 March 2004, the CCA rate is increased from 30% to 45%. The separate class election for computer is however terminated for equipment acquired on or after 1 January 2005 ;p. 334 * Extension of the Mineral Exploration Tax Credit: the Mineral Exploration Tax Credit, a temporary tax credit created by the 2000 Canadian federal budget and set to expire on 31 December 2004 per the 2003 Canadian federal budget is extended through 31 December 2005.p. 336

Expenditures

Reactions

Opposition parties

The budget was criticized by the

Conservative Party The Conservative Party is a name used by many political parties around the world. These political parties are generally right-wing though their exact ideologies can range from center-right to far-right. Political parties called The Conservative P ...

for its lack of

tax cut A tax cut represents a decrease in the amount of money taken from taxpayers to go towards government revenue. Tax cuts decrease the revenue of the government and increase the disposable income of taxpayers. Tax cuts usually refer to reductions in ...

s and its increases in spending. The

New Democratic Party The New Democratic Party (NDP; french: Nouveau Parti démocratique, NPD) is a federal political party in Canada. Widely described as social democratic,The party is widely described as social democratic: * * * * * * * * * * * * t ...

criticized the policy of debt reduction, arguing that social spending, especially on health care, would be more beneficial.

Legislative process

Before the budget could be passed, parliament was dissolved for the 2004 election. The budget legislation was appended to the 2005 budget that was passed the next year.

Notes and references

Budget Plan

External links

2004 Budget documentation

CBC.ca Federal Budget 2004
{{DEFAULTSORT:2004 Canadian Federal Budget Canadian budgets Federal budget Paul Martin 2004 government budgets