Federal budget
Editor's Note: the annual contribution amount limit for tax-free savings accounts has been corrected.
Seniors at age 71 will be able to leave more money in their Registered Retirement Income Funds following a change in minimum withdrawals announced in the federal government’s budget released Tuesday, April 21.
Effective immediately, the annual contribution limit for tax-free savings accounts will increase to $10,000 from $5,500.
Other highlights include increasing Employment Insurance (EI) benefits to care for a sick or dying relative to six months from six weeks. Also, relating to EI, premiums will be reduced by 21 per cent by 2017.
A new home accessibility tax credit will help seniors stay in their homes longer and will assist people with disabilities to have required renovations completed.
Infrastructure funding for public transit will roll out in 2017.
By 2019, the Conservatives say they will cut the small business tax rate to nine per cent for businesses making less than $500,000.
In education, there was money promised for First Nation education and making grants easier for post-secondary students.
There was also more money announced for security measures, defence spending and veterans.
Presentation of the budget was delayed from its typically time because Joe Oliver, finance minister, said he needed time to factor in the decrease in oil prices.
Conservatives had promised a balanced budget and in order to achieve that, they reduced this year’s contingency fund for emergencies by $2 billion and sold off General Motors shares purchased in the midst of the 2008 financial crisis.
