parliamentThe Liberal government’s maiden federal budget includes billions in new spending on Aboriginal Peoples and veterans, a revamped Canada child benefit and changes to employment insurance to soften the blow of a flagging economy.

But it comes at a cost: Finance Minister Bill Morneau is projecting a $29.4-billion deficit this year, three times the promised $10 billion shortfall, and a $17.7-billion deficit in 2019-20, the year the budget was supposed to be balanced.

The budget includes $2.6 billion over five years for primary and secondary education on First Nations reserves, including language and cultural programs, plus nearly $1 billion over five years for education infrastructure.

It also provides $5.6 billion more in benefits to veterans and their families over five years, but delays indefinitely a plan to spend billions more on procuring badly needed ships, planes and vehicles.

The government is also re-opening nine veterans’ service offices across the country and adding a 10th.

And a promised cut in the small business tax rate from 11 per cent to nine per cent has not fully materialized, falling only by half a percentage point, with the rest of the reduction deferred indefinitely.

The Liberals claim their budget will create 100,000 jobs and boost national economic growth, as measured by gross domestic product, by half a percentage point per year.

Timmins-James Bay MP Charlie Angus (NDP) has a few bones to pick with the Liberal government’s first budget.

While he likes the multi-billion dollar commitment to Aboriginals, there are shortfalls in child welfare, jobs and training for First Nations.

He also notes the Liberals made no mention of the Ring of Fire, FedNor or work to rural infrastructure in the region.

Here are some of the other highlights to Tuesday’s budget.

  • $10 billion more over two years for a new Canada child benefit, absorbing and replacing both the Canada child tax benefit and the universal child care benefit. Targeted to low and middle-income families, the government says the new benefit provides an average increase of nearly $2,300 in 2016-17.
  • $2.5 billion over two years on a suite of changes to employment insurance, including reducing the required work experience for new entrants and re-entrants; halving the two-week waiting period; extending a pilot project to allow claimants to work while collecting benefits; simplifying job-search requirements; and extending the benefit eligibility window in specific regions with a higher unemployment rate
  • An end to income splitting for couples with children, the children’s fitness tax credit and the children’s arts tax credit.
  • $1.2 billion over five years for social infrastructure for Aboriginal Peoples, including First Nations, Inuit and northern communities.
  • $10.4 million over three years for new women’s shelters in First Nations communities, and $33.6 million over five years and $8.3 million ongoing for support services.
  • Planned National Defence purchases worth $3.7 billion; ships, planes and vehicles are being deferred indefinitely.
  • $1.53 billion over five years to increase Canada student grants to $3,000 from $2,000 for low-income students, to $1,200 from $800 for middle-income students and to $1,800 from $1,200 for part-time students.
  • $3.4 billion over five years to increase the guaranteed income supplement top-up benefit by up to $947 annually for single seniors, and restore the old age security eligibility age to 65 from 67.
  • $2.2 billion over five years in water and wastewater treatment and waste management as part of a 10-year green infrastructure investment plan.
  • $1.9 billion over five years to support Canadian arts and culture organizations and cultural infrastructure, including the CBC and national museums.
  • $2 billion over three years for a new strategic investment fund for infrastructure improvements at colleges and universities, in partnership with provinces and territories.
  • $2 billion over two years for a low-carbon economy fund, beginning in 2017-18;
  • More than $1 billion over four years to support future clean technology investments, including in forestry, fisheries, mining, energy and agriculture, plus $130 million over five years to support clean technology research and development.
  • $345.3 million over five years to Environment and Climate Change Canada, Health Canada and the National Research Council to take action to address air pollution.
  • $40 million over two years for the inquiry into missing and murdered aboriginal women and girls.
  • Up to $178 million over two years for the provinces for urgent affordable housing needs.
  • $38.5 million over two years to strengthen and modernize Canada’s food safety system.
  • $142.3 million over five years to add new national parks and improve access during the 150th anniversary of Confederation