The hon. member says: "We will probably exceed it". I agree with him. I intend to refer to that later in my remarks. If the economic performance is stronger than the very prudent forecast of the minister in his budget, the deficit should fall even more.
The fiscal actions taken in the budget will total $29 billion over the next three years, more than any budget since World War II. In two years program spending will be $10.4 billion lower than it is today.
Just as important, the budget also changes the structure of how the government operates. The changes will ensure that spending will be restrained beyond the two-year target period so that the deficit will continue to fall, much to the dismay of Reformers, and will reflect the government's commitment to eliminate the deficit entirely.
To achieve these results the budget takes fundamental action across government programs and operations. It implements the results of program review, a comprehensive examination of departmental spending. The government will focus on what is essential and the government will do it better. The budgets of some government departments, as hon. members know, have been cut in half.
The budget also acts on the new vision of the federal government's role in the economy, one that includes substantial reductions in business subsidies. These will drop from $3.8 billion this year to $1.5 billion by 1997-98. They are very substantial cuts.
The budget reforms major transfers to the provinces, modernizing the federal-provincial fiscal regime and making it more effective, flexible and affordable. These wide ranging reforms will mean a smaller public service. Some 45,000 jobs will be eliminated as we have heard in the budget speech, but we will manage this difficult process with as much fairness as we can manage including the use of early departure and retirement incentives, some of which have already been announced by the involved ministers of the crown.
It is also essential to be fair to the taxpayer, and the budget is fair to Canadian taxpayers. The tax changes are modest. They affect only the most wealthy. The cuts are $7 to every $1 of increase in tax. It is a fair budget; it is a good budget. The hon. members opposite should be voting for the bill.