On Parliament Hill

As Canadians continue to revel in the pride of our record-breaking Olympic performance, our country’s economic performance offers another reason for us to feel proud.

Canada was drawn into the deepest global recession since the 1930s, but we entered into the recession in much better shape than the rest of the industrialized world. The government prudently regulated our financial system to make it the soundest in the world. Since taking office in 2006, our government has reduced taxes and aggressively paid down debt. This sensible approach allowed us to take the extraordinary, short-term measures necessary in Canada’s Economic Action Plan to protect Canadians during the recession.

Our Plan is working. More than 135,000 new jobs have been created since July, and 16,000 infrastructure projects have begun laying the foundation for long-term economic growth. We are seeing the signs of economic recovery but it still remains fragile with too many Canadians still looking for work.

That is why this year’s budget is a Jobs and Growth budget. It builds on Canada’s Economic Action Plan to solidify our recovery. In Year 2 of the plan, we are investing $19-billion to stimulate our economy and complete the rapid rollout of stimulus projects to create jobs now.

We are laying a strong foundation for long-term job creation and economic growth by investing in innovation, training and education. We are also sustaining Canada’s competitive advantage by lowering taxes, eliminating all remaining tariffs on manufacturing inputs and cutting red tape for small businesses.

Like all other industrialized countries, Canada incurred a deficit to implement its stimulus package. Once the economic recovery is solidly entrenched, our government will move forward on a plan to reduce the deficit and move back towards budgetary balance.

Our deficit reduction plan has three key points. First, we will wind down our stimulus spending as planned and on schedule. Second, we will restrain growth in government spending in specific areas. And third, we will undertake a comprehensive review of government spending on overhead and administration.

We will not balance the budget at the expense of pensioners. We will not balance the budget by cutting transfer payments for health care and education or by raising taxes on hard-working Canadians. For the Province of Manitoba, federal transfers will total almost $3.8 billion in 2010-11, an increase of $924 million since 2005-06.

Our plan will cut the deficit in half in two years and by two-thirds in three years. Shortly after that, the budget will be brought back fully into balance.

Canadian athletes showed the world their tenacity and competitive spirit at the Olympics. They are Canada’s inspiration as millions of Canadians step up to the world’s economic podium to prove we are open for business as we build a Canada in which our children and grandchildren will surpass us.