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OTTAWA (CP) - In a surprise move, next week's federal budget will set aside $400 million to help immigrants settle into Canada and pledge more cash to help them with job training, The Canadian Press has learned.
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And billions in new funding promised for cities will flow more slowly than expected, sources say. The Liberal minority government will also move to ensure quicker recognition of professional credentials from other countries - a move that could help with the doctor shortage.
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, i# d+ b4 [( @& ~' s3 m- }: Q& cUnlike most other promises coming in this budget, the help for immigrants wasn't a key commitment from last June's federal election campaign.
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/ k! L$ r) M9 y# r$ x/ ]) rBut it's sure to appeal to Canada's large immigrant population, whose political support the Liberals count on, and which all political parties are anxious to gain. ( v( m7 |3 O" A) a
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Despite the high profile given the federal Liberals "new deal for communities," money will actually flow slowly - just $600 million of the promised $5 billion is earmarked early delivery. $ }5 k" Q0 W% Y6 x* q# P& r% X
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Senior citizens and children will also see new money coming, although Ottawa's pledges will still outweigh the reality of what the government says it can actually afford to do.
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: @) {/ s2 [5 P( ]Under the themes of "promise-keeping and "honouring commitments," Finance Minister Ralph Goodale will present his second federal budget Wednesday, particularly crafted to woo voters and not alienate the opposition. ' H/ G$ Q/ R u
0 ?1 o- P$ \" H1 M I+ u* HShould the government fall in the coming months, the Liberals would have to campaign on the budget and must therefore drive home the message to voters that they keep their promises.
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That means a lot of seed money sprinkled around, since finances are tight in the coming two years - although that situation will improve after 2007, insists Goodale.
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"We've got an overall robust fiscal situation, but we've got an anomaly in the flow," as money tightens in the coming two years, as the high cost of a $41-billion health deal and a $33-billion equalization pact kick in," Goodale said Friday.
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: Q! Z+ w, {" K9 w8 h' _# B- GHe expects a surplus of just $500 million in the coming fiscal year and less than $1 billion in 2006-07, although each should be boosted by at least $1 billion a year as departments free up money from old programs to new priorities. 9 p, g) t! F. M
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Wednesday's budget is also expected to include:
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-$5 billion over five years to establish a national child-care program. 6 Z" R6 b$ Z/ T+ i' q: d
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-More than $5 billion extra over several years for environmental initiatives.
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1 f- l& A" z2 K-Increased benefits for seniors totalling about $500 million over two years.
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* {; a# h: N# t& W-Provide minor tax breaks.
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-A cut in the number of weeks needed for EI eligibility. 9 W5 I& G& e* N; J# `2 V9 H, q5 u0 [
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-Up to $1 billion extra over several years for the Canadian Forces. 8 p' I) M3 A. @0 r
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-Increased foreign aid. / a( F7 Y+ Z) w- I: m6 ]
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-About $100 million over two years to replace dilapidated native housing.
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& E& ?/ D/ d, v8 ^- Roughly $150 million over five years for learning programs on reserves.
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Critics complain Liberal finance ministers always underestimate their surpluses and insist Goodale will have much more cash than he currently admits to.
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Still, he'll cite tough times in delivering only $600 million in fiscal year 2005-06 for towns and cities, ramping up slowly to $2 billion in 2009-2010 to fulfil the pledge of $5 billion for the Liberal's touted cities' agenda. : e9 s, v. w* f, S
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For Ontario - promised $1.8 billion of the five-year total - that likely means little more than $200 million in this budget.
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Ottawa's pledge to share with communities five cents from its tax take per litre of gas sold has been a key plank in Martin's platform since he became prime minister.
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Senior citizens will see a healthy injection of new money through the Guaranteed Income Supplement for seniors of modest means. 4 k1 x( G4 l9 O3 g$ S% C. l
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Fully $700 million over the coming two years will be delivered, through an increase of $36 more per month for single recipients and about $60 monthly for couples to meet a key Liberal election promise from last June.
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About 1.5 million seniors receive the GIS in addition to their old age security benefits. # I9 C7 x' ]" F ]
) x1 i/ b* K h9 i0 Z1 ZAlthough Goodale expects a budget surplus of almost $9 billion in the current fiscal year that ends March 31, it'll be tough for him to use any of that in the coming year because of accounting principles. + ~: F* S, D; _) V/ ]+ H4 p
6 z: f% W+ \- U i% u8 F) L% {7 kBut more than $4 billion from that current surplus will be put into a trust fund for the provinces for health spending, as outlined in a bill now before the Commons. 6 _0 c. c+ g1 \
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Some small, targeted tax breaks are also likely to be included in the budget but won't be high profile or very expensive since they weren't highlighted in last year's election platform.
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Limited tax breaks will help the Liberals sell their budget to Opposition Conservatives who could bring down the entire government and force an other federal election by rejecting the budget.
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) S: ^2 c, u! V; D5 qA budget vote is slated for early March in the Commons. |
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