Money, money, money

Federal Finance Minister Jim Flaherty presented his government's proposed budget for 2009 last week. Here's a look at some of the highs and lows of the financial plan.

High - Infrastructure development. This is a double-win situation in these tough economic times. New projects, repairs and upgrades would not only help keep public properties in tip-top shape, but also help maintain and perhaps even increase levels of employment in local areas.

Low - Childcare. For those families struggling to make ends meet, a program or some sort of funding allowing parents to work while providing care for their children would have been a shining star on the Conservative budget. Instead, there wasn't any mention of childcare in the budget, and this is definitely not a step forward for Canadian society.

High - First-time homebuyers. This group would be allowed to withdraw up to $25,000 from their RRSPs to use towards a down payment. This is up from $20,000 and the withdrawal would be tax free if paid back within 15 years. This is good, as long as these homebuyers don't get over their head in debt, or lose their jobs because of the downturn in the economy.

High & Low - Personal income tax. It's a positive move for the government to propose raising the levels of personal income individuals can earn before paying federal income tax and raising the upper limits of the two lowest income tax brackets. However, this won't do very much for the lowest paid in working sector, which often tend to be females and single parents. Seniors will see a bit of financial relief with an increase to the Age Credit for 2009 - which will save them up to about $150 a year in taxes.

High - Home renovations. The government wants to give a tax credit (up to $1,350) on home improvement projects totalling at least $1,000, but no more than $10,000. Time to start thinking about installing that extra bathroom.

Low - Student debt. How can young, well-educated Canadians contribute to the economy when they have student loans that can be bigger than some people's mortgages? All the government had to do is make student loans interest-free and they would aptly be investing in tomorrow's decision makers.

High or Low - The environment. The government says it would provide $1 billion over five years to support research, development and demonstration endeavors, including carbon capture and storage projects.

While this is a pittance compared to American President Obama's recent announcement $55 billion for environmental spending in that country, at least the Conservatives are acknowledging the importance of a greener Canada.

Low - The deficit. The Georgian recently spoke with a business owner from Stephenville Crossing who said one secret to their success was never spending beyond their means. The feds have a different perspective. The government is anticipating a deficit of almost $34 billion in fiscal 2009. Total deficits running $84.9 billion are expected through to 2012-13, with a surplus of $700 million expected the following year.

Stimulating the economy in the short-term is one thing, but let's hope going into debt because of it doesn't mean long-term financial ruin - especially if the worldwide recession lasts longer than expected.