Overview

Building on initiatives in the October 2007 Economic Statement, Budget 2008 provides economic leadership both to meet near-term challenges and to enhance long-term prosperity. It does this by:

• Maintaining strong fiscal management through continued debt reduction, delivering on the Tax Back Guarantee, responsible spending, and improved management and governance of the Employment Insurance program.
• Strengthening Canada’s Tax Advantage by building on the broad-based tax reductions announced in the October 2007 Economic Statement. In particular, Budget 2008 proposes to establish the Tax-Free Savings Account, extend assistance for Canada’s manufacturing sector, and improve the scientific research and experimental development tax incentive program, particularly for small and medium-sized businesses.
• Investing in the future with funding for people, knowledge, business innovation, communities, traditional industries and infrastructure. Budget 2008 also proposes further steps to promote a sound and efficient financial sector.

With Budget 2008, the Government is taking important, focused actions to further implement Advantage Canada, the Government’s long-term plan to increase prosperity. These actions build on the October 2006 Tax Fairness Plan, Budget 2007 and the October 2007 Economic Statement, which are now boosting incomes and employment.