On March 22, 2017, Finance Minister Bill Morneau tabled the Liberal government’s 2017 federal budget.
The budget estimates a deficit of $23.0 billion for 2016-2017 and projected deficit of $28.5 billion for 2017–18, declining to $18.8 billion by 2021–22. Instead of planning to eliminate the deficit as previously proposed, the government says it will maintain a balanced net debt-to-GDP ratio of around 31 per cent over the next five years.
The budget does not propose changes to corporate or personal income tax rates or the corporate small business deduction threshold. Furthermore, there are no proposed changes to the capital gains inclusion rate, which is currently 50%. However, the government did indicate it will release more details on its plans to limit tax-planning strategies later this year.
In order to advance its goals of reducing tax evasion and improving compliance, the government plans to give the Canada Revenue Agency an additional $523.9 million over the next five years. The government anticipates the CRA will recover $2.5 billion for its efforts.
View SBLR's complete Budget Summary