Mr. Speaker, budget 2008 is balanced, focused and prudent. It builds on decisive pre-emptive action taken in the 2007 fall economic update and during winter 2008 to lower taxes for people and businesses, pay down debt and provide targeted support to troubled industries.
Budget 2008 contains more than 100 new measures, including a tax-free savings plan, the most significant personal savings vehicle since the introduction of RRSPs. For Canadians this is a powerful tax-free incentive to save.
Unlike our opponents, we are providing decisive leadership. Four months ago in the fall economic update, we provided $60 billion in tax relief to strengthen our economic fundamentals, including historic reductions to corporate income taxes and a further reduction of the GST to 5%. This budget prepares Canada and Canadians for the challenges ahead. It continues reducing debt and taxes, focuses government spending and provides additional support for sectors of the economy that are struggling in this period of global uncertainty.
Our government is providing responsible leadership. This is the third straight balanced budget. It is both responsible and realistic. Our fiscal projections are based on the most up to date private sector economic forecasts.
We are planning surpluses over the entire budget horizon. After accounting for measures proposed in the budget, we are planning to reduce the debt by $10.2 billion in 2007-08, $2.3 billion in 2008-09 and $1.3 billion in 2009-10. By 2012-13, we will have reduced the federal debt by more than $50 billion since coming to office.
We will not leave our children or grandchildren with the burden of paying for excessive spending, as in the past. Unlike the previous government, we will not be going on a year-end spending spree. Instead, we are giving Canadians a direct stake in and a direct benefit from debt reduction through our tax back guarantee.
Under the tax back guarantee, the government dedicates the effective interest savings from federal debt reduction each year to permanent and sustainable personal income tax reductions. As a result of 2009-10 tax reductions provided under the guarantee, this will amount to $2 billion.
Reducing the country's debt is sound fiscal management. It reduces the amount of money allocated to paying interest on the debt, it helps to keep interest rates low and encourage investment, it improves our ability to cope with economic surprises, it reduces our foreign debt while keeping Canadian dollars at home, and lastly, it ensures that our children will not have to bear the burden of a national debt created by former governments.
In the fall of 2007, we gave $60 billion in tax assistance to strengthen our economic base. That was what needed to be done. We also supported workers and communities in need.
Budget 2008 prepares Canada and Canadians for the challenges ahead. It continues reducing debt and taxes, focuses government spending, and provides additional support for sectors of the economy that are struggling in this period of global uncertainty.
My opponents here in Ottawa have been telling the media and Canadians that we are blowing the surplus. It takes a certain kind of Ottawa politician to view giving people their hard-earned money back as blowing the surplus.
What our opponents fail to understand is the government has no money. The money belongs to taxpayers. We have taken a balanced approach by providing sustainable tax relief, spending on the priorities of Canadians and reducing debt.
Budget 2008 is good for Ontario. Federal support for provinces and territories has reached unprecedented levels. For Ontario this totals $13.9 billion in 2008-09, an increase of $1.4 billion from last year and almost $2.7 billion since 2005-06.
Budget 2008 provides Ontario with: $358 million over three years through the $1 billion community development trust to support efforts to help vulnerable communities adjust to global uncertainty; $195 million over two years through the $500 million public transit capital trust; $156 million over five years for the $400 million police officers recruitment fund to recruit an additional 2,500 new front line police officers across Canada.
Ontario will also benefit from continued targeted support in 2008-09, including: $515 million for infrastructure initiatives, which will total $1.6 million for all provinces and territories, including significant support under the building Canada plan. This includes the gas tax refund, the building Canada fund, increased GST rebate from municipalities and the provincial-territorial equal per jurisdiction fund which will be $25 million in 2008-09. A further $117 million is being made available through the public transit capital trust.
Budget 2008 extends the gas tax fund to $2 billion per year nationally beyond 2013-14 and makes it a permanent measure. We are providing $195 million for labour market training as part of a commitment of $500 million a year in new funding to provinces and territories which begins this year, $303 million as its share of the following: $1.5 billion for the clean air and climate change trust, $300 million for the HPV immunization trust, and a $612 million patient wait times trust.
In addition to these measures, Ontario will continue to receive support through major federal transfers in 2008-09: $8.6 billion through the Canada health transfer, an increase of almost $523 million from last year, for a total of $22.6 billion for all provinces and territories, and this funding will continue annually through a 6% escalator; $4.1 billion through the Canada social transfer, which will provide provinces and territories with $10.6 billion, including an additional $800 million for post-secondary education.
This funding will grow annually through a 3% escalator, which takes effect this year. For Ontario this payment represents an increase of $931 million since 2005-06, which is a 29% increase. This is due mainly to an increase per capita cash allocation of the CST.
Budget 2008 builds on decisive and timely tax reductions for individuals, families and businesses which was introduced in 2006. Since coming to office, this government has provided $74.8 billion in tax relief to the people and businesses of Ontario.
Over this and the next two fiscal years, additional tax reductions in budget 2008 will provide the people and businesses of the province with tax relief of $199.3 million, including $24.1 million through the new tax-free savings account and $74.9 million through the extension of the accelerated capital cost allowance.
Ontario will also benefit from $22.1 million nationally to support changes to provide for easier access to credit through the agricultural advance payments program and $50 million through the cull breeding swine program.
It is obvious. This government is getting things done for the people of Canada and in particular for the people of Ontario.