Thank you, Mr. Chair.
It's a pleasure to be here to discuss “Budget 2018: Equality and Growth for a Strong Middle Class”, and to speak about the investments our government is making to keep Canada's economy strong.
First, I'd like to thank the Standing Committee on Finance for its work in pre-budget consultations. Your work helped us to create a 2018 budget that takes further steps toward building an equal, competitive, sustainable, and fair Canada.
I also want to thank the Canadians who took the time to submit their ideas to us in person and online.
We must and we want to make Canada a more equal, more competitive and fairer country, with a more sustainable economy. This is necessary because Canada needs the work and creativity of all Canadians to meet the challenges of today and tomorrow.
In return, the government must ensure that these same Canadians can benefit from the spinoffs of economic growth. In concrete terms, this means well-paying jobs for the middle class and for those working hard to join it.
That's precisely what budget 2018 does.
With budget 2018, we're building on a plan that respects the choice that Canadians made a little over two years ago—a confident and ambitious approach. That plan is working. Thanks to the hard work of Canadians, combined with the government's historic investments in people and communities, the Canadian economy created almost 600,000 jobs in the last two years, most of them full-time. The national unemployment rate is near its lowest level over the past 40 years.
However, while the Canadian economy is doing well, we know we still have more work to do. Through budget 2018, the government is taking the next steps in its plan to grow and strengthen the middle class by promoting equality and investing in the economy of the future. Providing all Canadians with the opportunity to realize their full potential is the right thing, and the smart thing, to do for our economy.
Budget 2018 introduces investments that will help make sure that everyone has an equal and fair chance at success. Simply put, when more people contribute to the economy, the economy is stronger.
For example, the budget introduced the new Canada workers benefit, or CWB. This is an enhanced version of the working income tax benefit. This new program will benefit more people than the one it replaces, and will put more money in the pockets of low-income workers. Moreover, the government will make it easier for people to access the benefit that they've earned. Starting next year, everyone who can benefit from the CWB will receive it when they file their taxes, even the tax filers who haven't claimed it.
The new Canada workers benefit will provide real help to over two million Canadians who are working hard to join the middle class and will lift 60,000 Canadians out of poverty by 2020.
Starting next year, all taxpayers entitled to this benefit will receive it when they file their tax return, whether they have applied for it or not. These measures will encourage more people to join the labour market. It's good for everyone.
The 2018 budget also contributes to increasing women's participation in the workforce. This will promote economic growth and benefit everyone.
According to the McKenzie Institute, by taking action to promote equality, such as employing more women in technology and increasing women's participation in the labour market, Canada could add $150 billion to its economy by 2026.
A study by the Royal Bank of Canada shows that increasing the participation of women in the Canadian workforce could increase Canada's gross domestic product by 4%. Full and equal participation of women and men in Canada's economy is essential for our future. Our economy cannot succeed when half of Canadians are held back.
The government is showing leadership and, this year, will introduce pay equity legislation in federally regulated sectors. We are committed to ensuring that women and men receive equal pay for work of equal value.
The new employment insurance parental sharing benefit offers parents more flexibility. It adds additional weeks of leave, weeks of benefits when both parents share the parental leave. This use-it-or-lose-it incentive allows for more equity in parenting and more flexibility for parents, especially women, to decide when to return to work.
The budget also takes further steps to ensure Canada and indigenous peoples can forge a new relationship built on trust, respect, and co-operation. Budget 2018 will help close the gap between the living conditions of indigenous peoples and those of non-indigenous peoples, facilitate self-determination, and advance reconciliation of rights. With new investments included in the budget, several long-term drinking water advisories on public water systems on reserve will be lifted even earlier than originally forecast.
There is more. Through the budget, the government is investing in indigenous peoples, removing barriers to their success, supporting their skills, and helping them fully participate in the economy and strengthen their communities.
Canadians believe protecting the environment is important, and the government does, too. Budget 2018 supports the development of a sustainable, low-carbon economy. The government is also promising to ensure that tariffs will be imposed on carbon pollution across Canada.
We know that science and innovation spur economic growth. That's why, through budget 2018, the government is making a historic investment of nearly $4 billion over five years in support of the next generation of Canadian research, providing increased support and training opportunities for about 21,000 researchers across Canada every year by 2021-22. These investments will give our world-class scientists the support and the tools they need for their important work that will help to drive our economy forward.
Budget 2018 offers real progress for the middle class. As Canada's economy continues to grow, the government will ensure that all Canadians share in and benefit from this success. The budget's growth-generating investments, some of which I've outlined today, are being balanced by sound fiscal management that includes a declining debt-to-GDP ratio. The federal debt-to-GDP ratio, which is our debt relative to the size of our economy, is not only on a downward track, but it's projected to be near its lowest level in nearly 40 years. Canada's net debt-to-GDP ratio is the lowest among all G7 countries.
The federal deficit-to-GDP ratio is on a downward track. It is projected to reach 0.5%. As a point of comparison, that of the United States federal government is currently at 3.5% and could reach about 5%.
In other words, Canada's fiscal house is in order, which means that we're resilient to shocks and uncertainty in the economy.
The indicators show that Canada's fiscal position is sound. This means that the government can confidently make investments to strengthen and grow the middle class.
Budget 2018 will stimulate growth and productivity in Canada, which is a good thing. The jobs of the future will depend on the ability of Canadians to innovate in a rapidly changing and increasingly globalized economy.
Budget 2018 focuses on Canada's future and the things that truly matter to Canadians. Guided by a new gender results framework, it ensures that every Canadian has a real and fair chance at success.
Mr. Chair, I'd be happy to answer questions from members of the committee, either on budget 2018 or on the Department of Finance interim estimates for 2018-19. We also have officials from the department in attendance if there are any very specific questions.
Thank you.
