Mr. Speaker, it is delightful to be back. I thank my hon. colleague for leaving me some time to discuss some of the issues around what we are calling prebudget.
The member made an interesting point. He said we were debating two things at this stage, given that the actual budget will be released in this place on February 16. We are talking about the budget in the year 2000 and we are also explaining to Canadian people the impact the 1998 budget has had on the economy and on our country as a whole.
We heard members opposite calling quite loudly for tax relief. It is my sense that there will be some additional tax relief in the budget. I am hopeful there will be. There was over $7 billion in tax relief in the 1998 budget, something that members opposite tend to gloss over. The Canadian people know because they can see it. They can see the actual benefits they get.
Just to share some of them with members, for example, there was an increase in the child tax benefit from the $850 million announced in the 1997 budget. An additional $850 million was put into that. That will go directly to benefiting low income Canadians who need assistance to go to work and to provide proper care for their children.
In addition a caregiver credit was provided in the 1998 budget. We do not hear members opposite talk about its importance. We can think about health care and the impact on families of providing care giving situations to their parents or other relatives. The government recognized it in 1998 as important. To give the detail, a caregiver credit will reduce federal tax by up to $400 for Canadians caring for an elderly parent or a family member with disabilities. This is significant tax relief targeted to help people who specifically need it. I hope we will see more of that kind of budgeting in the budget coming up later this month.
In addition there was an exemption on GST and HST for expenses incurred in the provision of temporary care to someone who by reason of infirmity or disability needed the particular care.
Once again we would think we would hear members in this place telling the Canadian people that this is good budgeting, good financing to help the people who need it most.
Also in that budget the Canadian opportunities strategy provided tax assistance for Canadians who wished to advance their learning. It did a number of things. It provided tax relief for interest payments on student loans. We heard from students at various committees and in our offices. They have written letters talking about the incredible burden of graduating from school with a debt burden of $25,000 or more from student loans. We provided some assistance and even an opportunity, if hardship could be shown, where that particular interest could be written off entirely.
There was an opportunity in the last budget for tax free RRSP withdrawals for lifelong learning. In today's society with the downsizing and the changes that have occurred there are many Canadians, many of them middle income Canadians, who cry for tax relief. Many Canadians have suddenly found themselves going from being middle income to being no income simply because they have been downsized, their company has changed their method of doing business or whatever. In many instances they are not only middle income but are also middle age.
This allows them an opportunity to tap into an RRSP fund that is available for their retirement to allow them to take courses so they can perhaps readjust and create new employment for themselves. It is tax relief with some sense behind it to say it will directly benefit those people who need the help. There is also an education credit and child care expense deduction for part time students.
In the last two budgets of the government there was a real move toward providing some tax relief that made sense. It was targeted to help people in either adjusting their lifestyle, taking care of dependants who might be ill, infirm or disabled in some way, or helping them provide education for younger members of their families.
When we talk in terms of the next budget perhaps we as parliamentarians will have some access to it. I believe, as my colleague mentioned, this budget has been put to bed. Being only a couple of weeks from now perhaps there are some i's to dot and t's to cross, but at the end of the day the budget policies have been hashed out in this place. The policies have gone before parliamentary committees. They have been taken to caucus. There has been input from Canadians. This budget is probably done. The next budget will be for the year 2000.
It is interesting that this is really about fighting over the spoils. When the government was first elected in 1993 it walked into a situation where people were describing us in cities like New York, Washington and others around the world as a third world country because of the size of our deficit at $42 billion. I stress the deficit being the overdraft, the deficit being the shortfall in the operating budget, not the debt. It is a different concept. It is important that Canadians understand that in 1993 the government was spending $42 billion on an operating basis more than it was bringing in in revenue.
The world was looking at us and saying that for the size of our country of 30 million people, for the size of our GDP, for the entire output of our nation, a $42 billion debt was unacceptable. We were being referred to as a third world nation.
That does incredible damage. It is not just the psyche and the problem it creates for Canadians who are proud of their country. Canadians continually hear others outside the country saying we are the greatest nation in the world. Canadians know that but were very uncomfortable feeling that no one was properly managing the financial store. I am sad to say that I think it was true. The proof was in the pudding. The reality is that the deficit has been eliminated and the government has retired $13 billion in marketable debt. For the first time perhaps since the days of Mike Pearson we see in a chart that there is a downward trend in the debt. There is an upward trend in the economy. Canadians are feeling proud not only of being from this great country with a health care system, quality of education, our standard of living and being proud of our flag, they are proud that this government has dedicated itself to fiscal restraint and at the same time has put in place opportunities to assist Canadians who need it through our tax relief programs. We are going to see more of the same and the country will continue to grow and prosper. Canadians know that and they speak about it in resounding numbers every day. Things are strong and will get stronger.