{{Short description|none}} {{Use Canadian English|date=January 2023}} {{Infobox government budget | title = Budget of the Canadian Federal Government | year = 2012 | country = Canada | previous_budget = 2011 Canadian federal budget | previous_year = 2011 | next_budget = 2013 Canadian federal budget | next_year = 2013 | image = | imagesize = | caption = | presented = 29 March 2012 | passed = 14 June 2012 | parliament = [[41st Canadian Parliament|41st]] | party = [[Conservative Party of Canada|Conservative]] | minister = [[Jim Flaherty]] | Total_Revenue = ''[[Canadian dollar|C]]$255.0 billion''<ref name="Department of Finance">[[#DOF2012|Department of Finance]]</ref><sup>‡</sup> | Total_Expenditures = ''C$276.1 billion''<ref name="Department of Finance"/> | deficit = C$25.9 billion<ref>{{cite web|title=Canada's deficits and surpluses, 1963-2014|url=https://www.cbc.ca/news2/interactives/canada-deficit/|website=CBC News|publisher=CBC/Radio-Canada|access-date=25 April 2015}}</ref> | url = [http://www.budget.gc.ca/2012/plan/pdf/Plan2012-eng.pdf Jobs, Growth, and Long-Term Prosperity] | below = <sup>‡</sup>Numbers in italics are projections. }}
The '''Canadian federal budget''' for fiscal year 2012–13 was presented to the [[House of Commons of Canada]] by [[Canadian Minister of Finance|Finance Minister]] [[Jim Flaherty]] on 29 March 2012. Among the most notable elements of the [[Canadian federal budget|federal budget]] were changes to [[Old Age Security]] and a reduction of the budget for the [[Canadian Forces]] and the [[Canadian Broadcasting Corporation]].
The budget presentation was also used to announce that the [[Penny (Canadian coin)|penny]] would no longer be minted as of late 2012.<ref>[[#penniless|CBC]]</ref>
==Key elements== These initiatives were to be delivered in periods that varied from one to five years: *The age of eligibility for [[Old Age Security]] would gradually rise from 65 to 67 between 2023 and 2029. *Funding for the [[Canadian Broadcasting Corporation]] was reduced by 10% to approximately $1 billion per year. Funding for the [[National Film Board of Canada]] and [[Telefilm Canada]] was also reduced 10%.<ref name=Kelly>{{cite news|last=Kelly|first=Brendan|title=CBC, NFB and Telefilm to see 10% cut|url=https://montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA|access-date=3 April 2012|newspaper=[[Montreal Gazette]]|date=30 March 2012|archive-date=18 July 2012|archive-url=https://web.archive.org/web/20120718045217/http://www.montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA|url-status=dead}}</ref> *19,200 federal public service jobs were eliminated, approximately 4.8% of all federal public service jobs. Of those, 7,200 would be via attrition, and 12,000 via [[layoff]]s.<ref name="Smith">[[#CFIA|Smith]]</ref> About 4,800 of the affected employees work in [[Ottawa]] or [[Gatineau]].<ref>[[#budgetwrap|National Post]]</ref> *Extension of [[Mineral Exploration Tax Credit]] and [[Small Business Hiring Tax Credit]] for one year, elimination of the [[Overseas Employment Tax Credit]] (OETC) by 2016, elimination of [[Atlantic Investment Tax Credit]] and creation of efforts to crack down on tax avoidance and close loopholes.
===Programs and departments eliminated=== Programs and departments cut as part of the budget included: *[[Assisted Human Reproduction Canada]] (effective 13 March 2013)<ref>[[#Blackwell|Blackwell]]</ref> *[[National Round Table on the Environment and the Economy]] *[[Katimavik]]<ref>[[#Katimavik|CBC News]]</ref> *[[National Aboriginal Health Organization]] (effective 30 June 2012)<ref>[[#NAHO|CBC News]]</ref> *[[Experimental Lakes Area]] (effective 31 March 2013) * Canadian Immigration Interim Federal Health Program (effective 30 June 2012)<ref name=cicSite>{{cite web|last=Citizenship and Immigration Canada|title=News Release – Reform of the Interim Federal Health Program ensures fairness, protects public health and safety|url=http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp|access-date=28 June 2012|archive-url=https://web.archive.org/web/20140306095126/http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp|archive-date=6 March 2014|url-status=dead}}</ref> * Arctic atmospheric research lab called PEARL – [[Polar Environment Atmospheric Research Laboratory]] (effective 30 April 2012)<ref>[[#cbcpearl|CBC]]: 2012</ref>
==Effects== As a result of the budget, in April 2012 the CBC announced it would cut its English Services budget by $86 million, of which $43 million was a reduction of programming and the remainder the elimination of 256 jobs.<ref>[[#CBCcuts|CBC]]</ref> It said it would also cut jobs in other departments, totalling 650 throughout the corporation.<ref>[[#CBCcuts|CBC]]</ref> The changes took effect in June 2012.<ref name="Dixon">[[#Dixon|Dixon]]</ref> It cancelled the TV series ''[[InSecurity]]''<ref>[[#Ryan|Ryan]]: 2012</ref> and the television program ''[[Connect with Mark Kelley]]''.<ref>[[#CBCcuts|CBC]]</ref> The changes included a reduction of the budget for [[CBC News]] by $10 million, the elimination of 88 jobs in that division, and the shuttering of its [[news bureau]]s in South America and Africa.<ref>[[#bureau|DeMara]]</ref> [[CBC Radio]] had its budget reduced by $3 million, eliminated 18 jobs,<ref>[[#CBCcuts|CBC]]</ref> and stated it would no longer commission [[radio drama]]s.<ref name="Dixon"/> Other programming cuts included the radio program ''[[Dispatches (radio program)|Dispatches]]'' and [[CBC Sports]], which had a $4 million budget reduction and recast ''Sports Weekend'' as a seasonal program.<ref>[[#CBCcuts|CBC]]</ref> Compared to its budget in 2011–12, the CBC operating budget was cut by $27.8 million in 2012–13, $69.6 million in 2013–14, and $115 million in 2014–15.<ref>[[#Press|Press]]</ref>
[[Agriculture and Agri-Food Canada]] announced in April 2012 that it would close the [[Cereal Research Centre]] operated at the [[University of Manitoba]].<ref>[[#cereal|CBC]]</ref> The [[Public Service Alliance of Canada]] (PSAC) stated that 5,561 of its members in 23 [[Structure of the Canadian federal government|government departments]] had received notices from the [[Government of Canada|federal government]] about the potential termination of their jobs.<ref name="Smith"/><ref>[[#cereal|CBC]]</ref> This includes 308 jobs at the [[Canadian Food Inspection Agency]],<ref name="Smith"/> which will cut its operating budget by $56 million.<ref>[[#Schmidt|Schmidt]]</ref> The [[Professional Institute of the Public Service of Canada]] announced that the employment of 1,500 of its members would be affected.<ref name="Smith"/> [[Health Canada]] would eliminate up to 840 jobs, including 150 scientists.<ref name="Smith"/>
The [[Department of National Defence (Canada)|Department of National Defence]] will cut at least 1,149 public service jobs,<ref name="Pugliese">[[#Pugliese|Pugliese]]</ref> about 585 of which are in the [[Canadian Forces]]<!-- or Army --> and 234 at the Defence Research and Establishment Canada.<ref name="Pugliese"/>
On 1 May 2012, PSAC announced that [[Parks Canada]] would eliminate 638 jobs, and that 1,689 of its "scientists, engineers, technicians, mechanics, carpenters and program managers" would be affected by changes,<ref name="Curry: 2012">[[#PCCurry|Curry]]: 2012</ref> and that 908 employees of [[Human Resources and Skills Development Canada]], 490 employees of [[Aboriginal Affairs and Northern Development Canada]], and 180 employees of [[Transport Canada]] would also be affected. [[Library and Archives Canada]] is expected to eliminate 105 jobs, and [[Statistics Canada]] is expected to cut 273.<ref name="Curry: 2012"/>
In November 2012, the [[Treasury Board]] president [[Tony Clement]] stated that the federal government had cut 10,980 public service jobs, of which 7,500 were by attrition or not replacing employees who had quit.<ref>[[#Payton|Payton]]</ref>
===Accelerated Capital Cost Allowance and Mining Exploration Credit=== In 2011, Statistics Canada reported that the nonfinancial corporate sector (NFCS) was "sitting on more than $583 billion in Canadian currency and deposits, and more than $276 billion in foreign currency."<ref name=CBC1jan2012>{{cite news|title=Canadian firms sit on money as taxes drop again: Last of 5 corporate tax cuts goes into effect this week|date=1 January 2012|publisher=CBC News|url=https://www.cbc.ca/news/canada/calgary/canadian-firms-sit-on-money-as-taxes-drop-again-1.1163244|access-date=2 July 2013}}</ref>
The Canadian government has introduced measures to encourage business to invest in the Canadian economy. There were five federal corporate tax cuts over a period of five years with the last 1.5 percent reduction taking effect on 30 December 2011, bringing the federal corporate tax to 15 per cent.<ref name=CBC1jan2012 />
Flaherty explained that the one-year extension on the Mineral Exploration Tax Credit and Small Business Hiring Tax Credit introduced in the 2012 budget are business incentives "to compel Canadian corporations to invest some $525 billion of [[Global saving glut|dead cash]] back into the economy."<ref name=macleans27aug2012>{{cite news|url=http://www.macleans.ca/2012/08/27/private-sector-should-be-responsible-for-stimulating-economy-flaherty-says/ |title=Private sector should be responsible for stimulating economy, Flaherty says |publisher=Macleans |date=27 August 2012 |access-date=2 July 2013}}</ref> In their analysis of the 2012 budget the Canadian Labour Congress argued that "non-financial corporations" have used their federal incentives and tax cuts<ref group=note>Prior to 2007, the federal corporate income tax rate was over 20%. Since 2007 the corporate tax rate was lowered. By 2012 it was 15%.</ref> to "buy up their own shares, to increase dividends, and to increase their cash holdings" which amounted to "close to $500 billion of surplus cash" that they were not investing in job creation.<ref name=CLC29mar2012>{{cite web|title=CLC Analysis of the 2012 Federal Budget |date=29 March 2012 |url=http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013 |publisher=Canadian Labour Congress |access-date=2 July 2013 |archive-url=https://web.archive.org/web/20130603181253/http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013 |archive-date=3 June 2013 |url-status=dead }}</ref>
==Reception==
This budget was criticized because of cuts to health care, the old age security, environmental protection and because of the expansion of $6 billion in corporate tax cuts for corporations, banks, and oil companies.{{citation needed|date=July 2020}}
==Notes== {{reflist|group=note}}
==References== ===Footnotes=== {{Reflist}}
===Bibliography=== {{refbegin}} *{{cite news|url=https://www.cbc.ca/news/business/the-penny-s-days-are-numbered-1.1174546|title=The penny's days are numbered|publisher=CBC|date=2012-03-29|access-date=2012-03-29|ref=penniless}} *{{cite news|url=https://www.cbc.ca/news/canada/cbc-cancels-shows-slashes-88-news-jobs-1.1159573|title=CBC cancels shows, slashes jobs in cutbacks|publisher=[[CBC News]]|date=10 April 2012|access-date=2012-04-10|ref=CBCcuts}} *{{cite news|url=https://www.cbc.ca/news/canada/manitoba/cereal-research-centre-to-close-amid-federal-cuts-1.1146550|title=Cereal Research Centre to close amid federal cuts|publisher=CBC News|date=11 April 2012|access-date=2012-04-11|ref=cereal}} *{{cite news|url=https://nationalpost.com/news/canada/budget-2012-federal-canada|title=Federal budget kills the penny, cuts CBC spending|last=Carlson|first=Kathryn Blaze|publisher=National Post|date=2012-03-29|access-date=2012-03-29|ref=budgetwrap}} *{{cite news|url=https://nationalpost.com/news/government-shutters-agency-that-oversees-canadas-fertility-and-assisted-reproduction-industry|title=Government shutters agency that oversees Canada's fertility and assisted reproduction industry|last=Blackwell|first=Tom|publisher=National Post|date=30 March 2012|access-date=2012-04-11|ref=Blackwell}} *{{cite news|url=https://www.theglobeandmail.com/news/politics/ottawa-notebook/parks-canada-hit-hard-as-ottawa-doles-out-nearly-4000-job-notices/article2418073/|title=Parks Canada hit hard as Ottawa doles out nearly 4,000 job notices|last=Curry|first=Bill|publisher=[[The Globe and Mail]]|date=1 May 2012|access-date=2012-05-01|ref=PCCurry}} *{{cite news|url=https://www.thestar.com/entertainment/article/1159268--cbc-cancels-connect-and-dispatches-in-response-to-federal-budget-cuts|title=CBC cancels Connect and Dispatches in response to federal budget cuts|last=DeMara|first=Bruce|publisher=[[Toronto Star]]|date=10 April 2012|access-date=2012-04-10|ref=bureau}} *{{cite news|url=https://www.theglobeandmail.com/news/arts/television/cbc-cuts-current-affairs-shows-88-news-jobs/article2397349/|title=CBC cuts current-affairs shows, 88 news jobs|last=Dixon|first=Guy|publisher=[[The Globe and Mail]]|date=10 April 2012|access-date=2012-04-11|ref=Dixon}} *{{cite news|url=https://nationalpost.com/2012/04/04/defence-department-cuts-1000-plus-civilian-workers/|title=Defence Department cuts 1,000-plus civilian workers|last=Pugliese|first=David|publisher=National Post|date=4 April 2012|access-date=2012-04-11|ref=Pugliese}} *{{cite news|url=https://nationalpost.com/news/canada/cbc-takes-a-10-federal-funding-cut-in-canada-budget-2012|title=CBC takes a 10% federal funding cut in Canada’s 2012 budget|last=Press|first=Jordan|publisher=National Post|date=29 March 2012|access-date=2012-04-11|ref=Press}} *{{cite web |url=https://www.theglobeandmail.com/news/arts/television/cbc-cancels-battle-of-the-blades-as-part-of-budget-cuts/article2407570/?from=sec434|title=CBC puts Battle of the Blades on hold|last=Ryan|first=Andrew|date=19 April 2012|publisher=The Globe and Mail|access-date=2012-04-19|ref=Ryan}} *{{cite news|url=https://nationalpost.com/news/canada/cuts-to-food-safety-inspection-force-will-impact-food-quality-in-canada-union|title=Cuts to food-safety inspection force will impact food quality in Canada: union|last=Schmidt|first=Sarah|publisher=[[National Post]]|date=11 April 2012|access-date=2012-04-11|ref=Schmidt}} *{{cite news|url=https://www.thestar.com/news/canada/politics/article/1159565--federal-budget-2012-up-to-100-food-inspectors-on-chopping-block-says-union|title=Federal budget 2012: Up to 100 food inspectors on chopping block, says union|last=Smith|first=Joanna|publisher=Toronto Star|date=11 April 2012|access-date=2012-04-11|ref=CFIA}} *{{cite news|url=https://www.cbc.ca/news/politics/almost-11-000-federal-jobs-cut-so-far-tony-clement-says-1.1288838|title=Almost 11,000 federal jobs cut so far, Tony Clement says|last=Payton|first=Laura|publisher=[[CBC News]]|date=16 November 2012|access-date=2012-11-16|ref=Payton}} {{cite web|url=https://www.cbc.ca/news/science/high-arctic-research-station-forced-to-close-1.1171728|title=High Arctic research station forced to close|publisher=CBC|date=28 February 2012|access-date=2012-07-09|ref=cbcpearl}} *{{cite web| url = https://budget.canada.ca/2012/plan/chap6-eng.html|title=Budget 2012 – Jobs, Growth, and Long Term Prosperity|publisher=Department of Finance, Government of Canada|access-date=2025-04-29|ref=DOF2012}} {{cite news|url=https://www.cbc.ca/news/politics/katimavik-killed-for-ideological-reasons-trudeau-says-1.1277023|title=Katimavik killed for 'ideological' reasons, Trudeau says|newspaper=[[CBC News]]|date=5 April 2012|access-date=6 April 2012|ref=Katimavik}} {{cite news|url=https://www.cbc.ca/news/canada/north/national-aboriginal-health-organization-s-funding-cut-1.1194520|title=National Aboriginal Health Organization's funding cut|newspaper=[[CBC News]]|date=2012-04-09|access-date=2012-04-10|ref=NAHO}} {{refend}}
==External links== *[http://www.budget.gc.ca/2012/plan/toc-tdm-eng.html Budget Plan] of the [[Government of Canada]] *[http://www.tbs-sct.gc.ca/media/nr-cp/2012/1116-eng.asp Harper Government Announces 10,980 Public Sector Positions Eliminated in Past Six Months] at the [[Treasury Board]]
{{Canada federal budget}} {{41st Canadian Parliament}} {{Stephen Harper}}
{{DEFAULTSORT:Canadian federal budget, 2012}} [[Category:Canadian budgets|2012]] [[Category:2012 government budgets|Canada]] [[Category:2012 in Canadian politics]] [[Category:41st Canadian Parliament|Budget, 2012]] [[Category:Jim Flaherty|Budget, 2012]] [[Category:Premiership of Stephen Harper|Budget, 2012]] [[Category:March 2012 in Canada]] [[Category:June 2012 in Canada]]