Summary of the All Important Federal Budget

Summary:
Total Money being Allocated = $39.9 billion


Communites = 19%

Infrastucture = 30%

House Incentives = 30%

Spending Incentives = 21%

Full Story:

Where is the money going?

Infrastructure investments ($10.7B)

• $4B Infrastructure Stimulus Fund

• $0.4B for Green Infrastructure Fund

• $1B accelerated payments under provincial-territorial funding initiative to expedite ‘ready-to-go’ projects

• $1B in community and recreational facilities

• $0.5B in First Nations infrastructure

• $3.1B in knowledge infrastructure (post-secondary education facilities, laboratories, electronic health records,
broadband, and other facilities)

• $0.7B in Federal infrastructure projects

Skills and Transition Strategy

• $1.9B to fund stronger EI benefits (extra 5 weeks of benefits, more extensive long-tenure and work-sharing
programs).

• $1.9B to enhance availability of training (EI and non-EI).

Communities

• $1B Community Adjustment Fund for mono-sectoral (forestry, livestock, automotive, …) regions in distress

• $0.4B for Southern Ontario development agency

• $2B for social housing, some on cost-shared basis with provinces

Tax measures

Individuals / Households

• Basic personal exemption amount increased by $720 to $10,320.

• Two lowest personal income tax (PIT) brackets increased by 7.5% from 2008 levels. The top of the first bracket
(income taxed at 15%) goes from $37,885 to $40,726. The top of the second bracket (income taxed at 22%)
moves from $75,769 to $81,452.

• Employment Insurance (EI) premium rates frozen for 2009-10.

• Higher level at which the National Child Benefit supplement for low-income families and the Canada Child Tax
Benefit are phased out.

• Effectively doubling the tax relief provided to low-income earners by the Working Income Tax Benefit (WITB).

• Age Credit increased by $1,000 to help low and middle-income seniors.

• Temporary (two year) extension of all regular EI benefit entitlements by five weeks and increasing the maximum
benefit duration by five weeks.

• Home Buyer’s Plan withdrawal (from RRSP) limit increased from $20,000 to $25,000.

• Home Renovation Tax Credit (HRTC) of up to $1,350 (15% credit for expenses exceeding $1,000, up to $10,000).

• First-Time Home Buyer credit worth $750 of closing costs.