The federal budget contained something for everyone: A plethora of large and small spending announcements, some tax relief and potential debt payments.

Unfortunately, it lacked an overarching goal other than to simply fulfil the Liberal party’s election promises, which a majority of Canadians voted against. The budget, in attempting to satisfy everyone, will inevitably satisfy no one.

The main priority of the budget was to significantly expand spending, in both new areas as well as existing areas. All told, the federal government expects program spending to reach $161.3 billion in 2005-06, an increase of $19.9 billion in just two years and a startling $54.4-billion increase since 1997 when Ottawa balanced its books.

Program spending has increased 50.9 per cent since 1997, well beyond the rate of economic growth, increases in population, or inflation. In addition, Canadians should be particularly concerned with the huge increase in spending undertaken this current fiscal year: $16.7 billion, a 12-per-cent increase.

Chief among the spending items was the confirmation of last year’s health accord ($41.3 billion over 10 years.) This is on top of the increased health care spending totalling $58.7 billion already undertaken since 1997. And it does not include another $805 million announced in the budget separately.

Unfortunately, health care is a prime example of the feds continuing to throw money at a problem that has nothing to do with money. The failures are entirely about the way in which we have organized the health care sector. It is important to note that, despite the nearly $59-billion increase in health spending by Ottawa since 1997, health performance continues to wane; median total waiting times (from GP referral to treatment) have increased 50 per cent, access to doctors and technology are still among the worst in the industrialized world, and health outcomes compared to western economies remain average.

In addition to the two big-ticket items (health care and equalization), there were nearly 40 new spending initiatives announced in the budget totalling some $32.8 billion over the next five years. For example, Canadian heritage programs such as sports and culture received $1.6 billion; regional and industry subsides will be increased by $2.1 billion; the so-called Innovation Agenda got another $811 million; foreign aid an additional $4.1 billion, and nearly $5 billion for environmental initiatives were announced.

The government’s proclivity for spending continues unabated at the expense of meaningful tax relief that would address some of Canada’s more pressing economic problems, such as stagnating incomes and slower productivity growth.

While we applaud the federal government for reducing both personal and business taxes, we’re concerned with both the mix of tax cuts announced and the fact that most of the tax relief does not take effect until either 2007 or 2008.

For example, the most important tax relief announced in the budget relating to competitiveness and improving productivity was the reduction in the business income tax rate from 21 per cent to 19 per cent and the elimination of the corporate surtax.

Unfortunately, neither of these initiatives will occur in the next three years. Instead, these important changes have been deferred until 2008-09.

Even other more popular and politically expedient tax cuts, such as the announced increase in the basic personal exemption, were largely deferred. For example, the bulk of the tax relief provided by increasing the basic exemption will not occur until 2007-08. The tax cuts provided in the near term are small.

Unfortunately for Canadians, this budget will do very little to improve their lives, their economy, or even the government programs they demand. The first minority budget in 25 years is disappointing.