1. There were no significant personal or corporate tax changes.



2. The five-year package of income tax reductions announced in 2000 will proceed as scheduled.



3. The primary focus of the Budget was to strengthen the economy and security. The Budget outlined a five-year package of security funding totalling $7.7 billion; $1.1 billion over 3 years for skills, learning and research, $2 billion for infrastructure and a $1.0 billion increase over 3 years for international aid.



4. Economic recovery is anticipated in second half of 2002.



5. Canadian economic growth is forecast as:

2001 - 1.3%
2002 - 1.1%
2003 - 3.9%

6. Surplus for 2000-2001 is $17.1 billion.



7. This will be the fifth balanced budget in a row.



8. The debt-to-GDP ratio will fall below 50% next year for the first time in 17 years.

AIR TRAVEL TAX

1. A new "Air Travellers Security Charge" beginning April 2002 will be charged for air travel based on $12 for each one-way ticket or $24 per return flight.
2. This tax will help offset cost of increased airport security and armed undercover officers on some flights.

CORPORATE TAX INSTALMENTS

1. To help improve cash flows for small businesses, corporate income tax instalments and payments for January to March 2002 may be deferred for six (6) months. This only applies to small businesses (ie - associated group with taxable capital less than $15 million in previous year.

DEDUCTION

1. A new tax deduction is available for tuition assistance, received for adult basic education. The amount of taxable tuition assistance received for adult basic education may be deducted from income back to 1997. The tuition assistance must have been provided under the Employment Insurance Act or training program established by the Minister of Human Resources & Development.



2. The education tax credit is extended to students receiving taxable assistance for post-secondary education under government training programs after 2002.

DONATING SHARES TO CHARITY

1. The reduced capital gains inclusion rate of 25% on gains from donation of publicly-traded securities to public charities, originally scheduled to expire on December 31, 2001, is now a permanent measure.

APPRENTICE CAR MECHANICS

1. Apprentice car mechanics can deduct a portion of the cost of their tools purchased after 2001. A GST rebate will also be available.

CONSTRUCTION WORK CAMPS

1. The full cost of meals provided at special construction camps will be fully deductible to employers after 2001, rather than being subject to the 50% limitation.