Economic Action Plan 2013

Economic Action Plan 2013
Name	Economic Action Plan 2013
Jurisdiction	Canada
Date	2013
Previous	Economic Action Plan 2012
Next	Budget of the Canadian Government

Economic Action Plan 2013 was a federal budgetary package presented by the Department of Finance (Canada) in 2013 under the administration of Prime Minister Stephen Harper and Minister of Finance Jim Flaherty. It combined tax policy changes, targeted spending initiatives, and fiscal projections intended to address post‑recession stabilization, competitiveness, and long‑term budgetary balance. The plan intersected with discussions involving provincial executives such as Christy Clark and Kathleen Wynne, as well as federal institutions like the Canada Revenue Agency and the Parliament of Canada.

Background and objectives

The package was developed amid global conditions influenced by the aftermath of the Great Recession, debates following the 2012 Canadian federal budget, and contemporaneous fiscal policy choices in jurisdictions such as the United States and United Kingdom. Policymakers framed goals around deficit reduction, promoting investment in energy sectors linked to Alberta and Saskatchewan, and measures aimed at households and businesses shaped by input from stakeholders including the Canadian Federation of Independent Business and the Business Development Bank of Canada. Objectives referenced competitiveness discussions involving multilateral forums like the G20 and trade negotiations such as the North American Free Trade Agreement context.

Key measures and tax changes

Tax changes included modifications to income tax provisions affecting individuals and corporations, adjustments to credits administered by the Canada Revenue Agency, and alterations to rules impacting investment vehicles regulated by entities like the Office of the Superintendent of Financial Institutions. Measures proposed alterations to rates and credits that intersected with registered plans such as the Registered Retirement Savings Plan and institutions including the Canada Pension Plan administration discussions. The plan proposed incentives designed to affect sectors tied to natural resources and manufacturing, and tax treatments that raised responses from groups like the Canadian Labour Congress and the Canadian Chamber of Commerce.

Program spending and investments

Spending priorities allocated funds to infrastructure initiatives aligned with programs administered by the Infrastructure Canada portfolio and involved transfers to provinces with premiers such as Brad Wall and Daryl Katz‑associated stakeholders in the private sector. Investments targeted research and innovation bodies such as the Natural Sciences and Engineering Research Council and the National Research Council (Canada), and included support mechanisms for small businesses channeled through the Business Development Bank of Canada and regional development agencies like FedDev Ontario and Western Economic Diversification Canada. Funding envelopes also touched on programs administered by social service institutions such as the Canada Mortgage and Housing Corporation.

Fiscal impact and economic projections

Fiscal projections released with the plan presented deficit and surplus scenarios prepared by the Department of Finance (Canada) and debated in the House of Commons of Canada finance committee alongside analyses from the Bank of Canada and independent commentators such as economists at the Conference Board of Canada and the Fraser Institute. Macroeconomic assumptions referenced indicators monitored by the International Monetary Fund and the Organisation for Economic Co-operation and Development, including GDP growth, commodity prices relevant to Alberta oil, and unemployment data tracked by Statistics Canada. Forecasts estimated multi‑year impacts on public accounts and debt‑to‑GDP ratios that informed intergovernmental discussions with provincial finance ministers like Scott Moe and François Legault.

Political response and public reception

Political reactions spanned party lines with critiques and endorsements from the Liberal Party of Canada, the New Democratic Party, and the Conservative Party of Canada, and commentary from opposition leaders such as Justin Trudeau and Thomas Mulcair. Interest groups including the Canadian Association of Petroleum Producers and unions affiliated with the Canadian Labour Congress issued statements, while media organizations like the Globe and Mail and the National Post provided analysis. Public opinion measured by polling firms such as Ipsos Reid and Nanos Research reflected regional divides across provinces including Ontario, Québec, and British Columbia.

Implementation and timeline

Implementation relied on legislative approval through the Parliament of Canada budget process, regulatory changes administered by the Canada Revenue Agency, and program delivery coordinated with provincial agencies such as Ontario Ministry of Finance and territorial administrations like the Government of Yukon. Some measures required statutory amendments debated in committee sessions of the House of Commons of Canada and the Senate of Canada, with phased rollouts tied to fiscal years and periodic reporting to Parliamentary committees including the Standing Committee on Finance.

Legacy and subsequent developments

The plan influenced subsequent fiscal frameworks including later budgets presented by the Department of Finance (Canada) and informed policy debates leading into the 2015 Canadian federal election. Outcomes were analyzed by academic institutions such as the University of Toronto and think tanks like the C.D. Howe Institute, and its components affected sectors monitored by agencies including the Canada Energy Regulator and the Bank of Canada. Elements of the plan shaped dialogues on tax competitiveness, infrastructure funding, and intergovernmental fiscal arrangements, resonating in provincial policy choices by administrations such as Rachel Notley and John Horgan.

Category:2013 in Canada Category:Budgets of Canada