Tory Minister Reiterates Balanced Budget is Priority over Tax Cuts

This article was last updated on April 16, 2022

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The Conservative government has recently confirmed that the 2014 budget will be more inclined towards removing the deficit rather than allowing new tax cuts as it alleged that they can until the books are balanced. The federal Minister of State for Finance, Kevin Sorenson, was addressing the Economic Club of Canada in Toronto, when he revealed major outline of the upcoming budget. Mr. Sorenson mentioned that “like its predecessors, Economic Action Plan 2014 will continue to focus on controlling spending and using every tax dollar as efficiently as possible.”

Although the speech mostly highlighted the Conservative government’s economic record, it also reiterated recent promises made in the fall throne speech, like the promise to introduce a balanced budget legislation and impose a budget freeze on federal departments. On the other hand, several mainstream Business groups, including the Canadian Federation of Independent Business, had persistently counseled the government and have been openly pushing for some form of tax break in the upcoming budget. One such proposal sought reduction in the tax rate for small business or a continuation of the hiring credit for small business.

However, Mr. Sorenson adamantly mentioned in his cautious speech that such requests will have to wait until the government manages a balanced budget. Additionally, the minister of state alleged that the government’s plan “includes looking at further tax relief and new ways to provide support to businesses like yours, following the return to a balanced budget.”