Mr. Chair, it is a pleasure for me to rise in this chamber today to address the committee of the whole.
I would like to use my time to speak about the investments our government is making to keep Canada's economy strong and growing for the long term.
We bring a fundamentally new and optimistic approach to managing Canada's economy, one that is focused squarely on the middle class and on those working hard to join it.
Budget 2016 would help those who need it most, while charting a new course for economic growth and prosperity over the long term. It would take an important first step in our plan to grow Canada's economy and provide Canadians with a sense of hope and optimism, and it would answer the call of millions of Canadians who told us, both before the budget and after, that they want real change.
The general economic situation in our country can be assessed by how middle-class Canadians are doing. Canadians have long believed that with a bit of luck and a lot of hard work, they can give their children a brighter future.
However, the reality is that while our economy is still growing, middle-class Canadians are having difficulties. Many Canadians are working even harder and even longer, and the cost of living continues to rise. Middle-class families simply do not feel as though their situation is improving.
They need a government that acts to restore hope and brings about opportunities. What they need is more than temporary half measures. That is why I tabled a budget on March 22 that recaptures the hope and optimism that existed in previous generations.
I can tell members that our plan for the middle class is resonating with Canadians. Since the day after I tabled budget 2016, I have been travelling across Canada from the Maritimes, Quebec City, Waterloo, west to Vancouver. I have met with everyday workers, business owners, and innovators. I have met with economists, representatives of the financial sector, and investors. They think we are onto something.
Canadians are telling us that we are on the right path to long-term growth. I have also taken our message internationally to Chicago, New York, Paris, London, Washington, and earlier this month, Japan. At the G7 finance ministers' meeting in Sendai, Japan, I shared Canada's plan for a strong middle class, inclusive growth, and prosperity with my counterparts from the world's most advanced economies. I heard the same thing there as I have heard elsewhere internationally: “I really like what you are doing in Canada”.
The Financial Times called Canada a glimmer of light. The Wall Street Journal called Canada the poster child for the International Monetary Fund's global growth strategy. Christine Lagarde herself, head of the International Monetary Fund, praised our approach.
Our budget earned these endorsements because, I firmly believe, our government is focused on exactly the right things. Measures in budget 2016 would give Canadians the opportunity to build better lives for themselves. For some, that would mean being able to afford to send their kids to a quality day care or helping their teenagers with college tuition. For others, it would mean a secure and dignified retirement.
We have chosen to invest in Canadians because they are this country's most precious resource. Canadians are among the most highly skilled and educated citizens in the world. As a result, we are poised to lead on many fronts owing to their strength, the soundness of our policy choices, and our strong fiscal position.
As we predicted, the March 2016 “Fiscal Monitor” reported a significant drop in revenues at the end of the last fiscal year because of the economic downturn and low oil prices. How can the government help reverse the trend towards declining revenues and promote a more resilient economy? How can we ensure that every dollar invested generates maximum benefits?
If we want to act responsibly, we must seize the opportunity before us. In total, our budget injects about $11.5 billion into the Canadian economy in 2016 and $15 billion in 2017. Through these major investments, we plan to increase our real gross domestic product by 0.5% over the next two years, and by 1% the year after that.
We believe the time to act is now. We have the lowest net debt-to-GDP ratio in the G7. Interest rates are at historic lows. This allows the Government of Canada to borrow on favourable terms and boost the economy over the long term. By the end of 2020-21, our GDP level will be even lower than where it stands today.
Having the fiscal capacity to act is not enough. We also must demonstrate a willingness. That is why, even before tabling the budget, our government set to work to create the conditions that help middle-class Canadians and their families. In December, we took a significant first step to strengthen the middle class by cutting taxes for nearly nine million Canadians. To help pay for this middle-class tax cut, we raised taxes on the wealthiest 1%, those making more than $200,000.
Building on this tax cut, budget 2016 introduced the new Canada child benefit, which would give nine out of 10 families more in child benefits than they currently receive. The benefit would be simpler, tax-free, and more generous. Families that benefit would see an average increase in child benefits of almost $2,300 in 2016-17.
What is even more important is that this new benefit will lift approximately 300,000 more children out of poverty in 2016-17 compared to 2014-15. The Canada child benefit will give families more money and also represents the most important innovation in social policy in a generation.
