# 2012 Canadian federal budget

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2012 Budget of the Canadian Federal Government Presented 29 March 2012 Passed 14 June 2012 Country Canada Parliament 41st Party Conservative Finance minister Jim Flaherty Total revenue C$255.0 billion[1]‡ Total expenditures C$276.1 billion[1] Deficit C$25.9 billion[2] Website Jobs, Growth, and Long-Term Prosperity ‡Numbers in italics are projections. ‹ 2011 2013›

The **Canadian federal budget** for fiscal year 2012–13 was presented to the [House of Commons of Canada](/source/House_of_Commons_of_Canada) by [Finance Minister](/source/Canadian_Minister_of_Finance) [Jim Flaherty](/source/Jim_Flaherty) on 29 March 2012. Among the most notable elements of the [federal budget](/source/Canadian_federal_budget) were changes to [Old Age Security](/source/Old_Age_Security) and a reduction of the budget for the [Canadian Forces](/source/Canadian_Forces) and the [Canadian Broadcasting Corporation](/source/Canadian_Broadcasting_Corporation).

The budget presentation was also used to announce that the [penny](/source/Penny_(Canadian_coin)) would no longer be minted as of late 2012.[3]

## 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](/source/Old_Age_Security) would gradually rise from 65 to 67 between 2023 and 2029.

- Funding for the [Canadian Broadcasting Corporation](/source/Canadian_Broadcasting_Corporation) was reduced by 10% to approximately $1 billion per year. Funding for the [National Film Board of Canada](/source/National_Film_Board_of_Canada) and [Telefilm Canada](/source/Telefilm_Canada) was also reduced 10%.[4]

- 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 [layoffs](/source/Layoff).[5] About 4,800 of the affected employees work in [Ottawa](/source/Ottawa) or [Gatineau](/source/Gatineau).[6]

- Extension of [Mineral Exploration Tax Credit](https://en.wikipedia.org/w/index.php?title=Mineral_Exploration_Tax_Credit&action=edit&redlink=1) and [Small Business Hiring Tax Credit](https://en.wikipedia.org/w/index.php?title=Small_Business_Hiring_Tax_Credit&action=edit&redlink=1) for one year, elimination of the [Overseas Employment Tax Credit](https://en.wikipedia.org/w/index.php?title=Overseas_Employment_Tax_Credit&action=edit&redlink=1) (OETC) by 2016, elimination of [Atlantic Investment Tax Credit](https://en.wikipedia.org/w/index.php?title=Atlantic_Investment_Tax_Credit&action=edit&redlink=1) 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](/source/Assisted_Human_Reproduction_Canada) (effective 13 March 2013)[7]

- [National Round Table on the Environment and the Economy](/source/National_Round_Table_on_the_Environment_and_the_Economy)

- [Katimavik](/source/Katimavik)[8]

- [National Aboriginal Health Organization](/source/National_Aboriginal_Health_Organization) (effective 30 June 2012)[9]

- [Experimental Lakes Area](/source/Experimental_Lakes_Area) (effective 31 March 2013)

- Canadian Immigration Interim Federal Health Program (effective 30 June 2012)[10]

- Arctic atmospheric research lab called PEARL – [Polar Environment Atmospheric Research Laboratory](/source/Polar_Environment_Atmospheric_Research_Laboratory) (effective 30 April 2012)[11]

## 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.[12] It said it would also cut jobs in other departments, totalling 650 throughout the corporation.[13] The changes took effect in June 2012.[14] It cancelled the TV series *[InSecurity](/source/InSecurity)*[15] and the television program *[Connect with Mark Kelley](/source/Connect_with_Mark_Kelley)*.[16] The changes included a reduction of the budget for [CBC News](/source/CBC_News) by $10 million, the elimination of 88 jobs in that division, and the shuttering of its [news bureaus](/source/News_bureau) in South America and Africa.[17] [CBC Radio](/source/CBC_Radio) had its budget reduced by $3 million, eliminated 18 jobs,[18] and stated it would no longer commission [radio dramas](/source/Radio_drama).[14] Other programming cuts included the radio program *[Dispatches](/source/Dispatches_(radio_program))* and [CBC Sports](/source/CBC_Sports), which had a $4 million budget reduction and recast *Sports Weekend* as a seasonal program.[19] 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.[20]

[Agriculture and Agri-Food Canada](/source/Agriculture_and_Agri-Food_Canada) announced in April 2012 that it would close the [Cereal Research Centre](/source/Cereal_Research_Centre) operated at the [University of Manitoba](/source/University_of_Manitoba).[21] The [Public Service Alliance of Canada](/source/Public_Service_Alliance_of_Canada) (PSAC) stated that 5,561 of its members in 23 [government departments](/source/Structure_of_the_Canadian_federal_government) had received notices from the [federal government](/source/Government_of_Canada) about the potential termination of their jobs.[5][22] This includes 308 jobs at the [Canadian Food Inspection Agency](/source/Canadian_Food_Inspection_Agency),[5] which will cut its operating budget by $56 million.[23] The [Professional Institute of the Public Service of Canada](/source/Professional_Institute_of_the_Public_Service_of_Canada) announced that the employment of 1,500 of its members would be affected.[5] [Health Canada](/source/Health_Canada) would eliminate up to 840 jobs, including 150 scientists.[5]

The [Department of National Defence](/source/Department_of_National_Defence_(Canada)) will cut at least 1,149 public service jobs,[24] about 585 of which are in the [Canadian Forces](/source/Canadian_Forces) and 234 at the Defence Research and Establishment Canada.[24]

On 1 May 2012, PSAC announced that [Parks Canada](/source/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,[25] and that 908 employees of [Human Resources and Skills Development Canada](/source/Human_Resources_and_Skills_Development_Canada), 490 employees of [Aboriginal Affairs and Northern Development Canada](/source/Aboriginal_Affairs_and_Northern_Development_Canada), and 180 employees of [Transport Canada](/source/Transport_Canada) would also be affected. [Library and Archives Canada](/source/Library_and_Archives_Canada) is expected to eliminate 105 jobs, and [Statistics Canada](/source/Statistics_Canada) is expected to cut 273.[25]

In November 2012, the [Treasury Board](/source/Treasury_Board) president [Tony Clement](/source/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.[26]

### 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."[27]

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.[27]

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 [dead cash](/source/Global_saving_glut) back into the economy."[28] In their analysis of the 2012 budget the Canadian Labour Congress argued that "non-financial corporations" have used their federal incentives and tax cuts[note 1] 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.[29]

## 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](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed)*]

## Notes

1. **[^](#cite_ref-29)** 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%.

## References

### Footnotes

1. ^ [***a***](#cite_ref-Department_of_Finance_1-0) [***b***](#cite_ref-Department_of_Finance_1-1) [Department of Finance](#DOF2012)

1. **[^](#cite_ref-2)** ["Canada's deficits and surpluses, 1963-2014"](https://www.cbc.ca/news2/interactives/canada-deficit/). *CBC News*. CBC/Radio-Canada. Retrieved 25 April 2015.

1. **[^](#cite_ref-3)** [CBC](#penniless)

1. **[^](#cite_ref-Kelly_4-0)** Kelly, Brendan (30 March 2012). ["CBC, NFB and Telefilm to see 10% cut"](https://web.archive.org/web/20120718045217/http://www.montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA). *[Montreal Gazette](/source/Montreal_Gazette)*. Archived from [the original](https://montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA) on 18 July 2012. Retrieved 3 April 2012.

1. ^ [***a***](#cite_ref-Smith_5-0) [***b***](#cite_ref-Smith_5-1) [***c***](#cite_ref-Smith_5-2) [***d***](#cite_ref-Smith_5-3) [***e***](#cite_ref-Smith_5-4) [Smith](#CFIA)

1. **[^](#cite_ref-6)** [National Post](#budgetwrap)

1. **[^](#cite_ref-7)** [Blackwell](#Blackwell)

1. **[^](#cite_ref-8)** [CBC News](#Katimavik)

1. **[^](#cite_ref-9)** [CBC News](#NAHO)

1. **[^](#cite_ref-cicSite_10-0)** Citizenship and Immigration Canada. ["News Release – Reform of the Interim Federal Health Program ensures fairness, protects public health and safety"](https://web.archive.org/web/20140306095126/http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp). Archived from [the original](http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp) on 6 March 2014. Retrieved 28 June 2012.

1. **[^](#cite_ref-11)** [CBC](#cbcpearl): 2012

1. **[^](#cite_ref-12)** [CBC](#CBCcuts)

1. **[^](#cite_ref-13)** [CBC](#CBCcuts)

1. ^ [***a***](#cite_ref-Dixon_14-0) [***b***](#cite_ref-Dixon_14-1) [Dixon](#Dixon)

1. **[^](#cite_ref-15)** [Ryan](#Ryan): 2012

1. **[^](#cite_ref-16)** [CBC](#CBCcuts)

1. **[^](#cite_ref-17)** [DeMara](#bureau)

1. **[^](#cite_ref-18)** [CBC](#CBCcuts)

1. **[^](#cite_ref-19)** [CBC](#CBCcuts)

1. **[^](#cite_ref-20)** [Press](#Press)

1. **[^](#cite_ref-21)** [CBC](#cereal)

1. **[^](#cite_ref-22)** [CBC](#cereal)

1. **[^](#cite_ref-23)** [Schmidt](#Schmidt)

1. ^ [***a***](#cite_ref-Pugliese_24-0) [***b***](#cite_ref-Pugliese_24-1) [Pugliese](#Pugliese)

1. ^ [***a***](#cite_ref-Curry:_2012_25-0) [***b***](#cite_ref-Curry:_2012_25-1) [Curry](#PCCurry): 2012

1. **[^](#cite_ref-26)** [Payton](#Payton)

1. ^ [***a***](#cite_ref-CBC1jan2012_27-0) [***b***](#cite_ref-CBC1jan2012_27-1) ["Canadian firms sit on money as taxes drop again: Last of 5 corporate tax cuts goes into effect this week"](https://www.cbc.ca/news/canada/calgary/canadian-firms-sit-on-money-as-taxes-drop-again-1.1163244). CBC News. 1 January 2012. Retrieved 2 July 2013.

1. **[^](#cite_ref-macleans27aug2012_28-0)** ["Private sector should be responsible for stimulating economy, Flaherty says"](https://www.macleans.ca/2012/08/27/private-sector-should-be-responsible-for-stimulating-economy-flaherty-says/). Macleans. 27 August 2012. Retrieved 2 July 2013.

1. **[^](#cite_ref-CLC29mar2012_30-0)** ["CLC Analysis of the 2012 Federal Budget"](https://web.archive.org/web/20130603181253/http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013). Canadian Labour Congress. 29 March 2012. Archived from [the original](http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013) on 3 June 2013. Retrieved 2 July 2013.

### Bibliography

- ["The penny's days are numbered"](https://www.cbc.ca/news/business/the-penny-s-days-are-numbered-1.1174546). CBC. 2012-03-29. Retrieved 2012-03-29.

- ["CBC cancels shows, slashes jobs in cutbacks"](https://www.cbc.ca/news/canada/cbc-cancels-shows-slashes-88-news-jobs-1.1159573). [CBC News](/source/CBC_News). 10 April 2012. Retrieved 2012-04-10.

- ["Cereal Research Centre to close amid federal cuts"](https://www.cbc.ca/news/canada/manitoba/cereal-research-centre-to-close-amid-federal-cuts-1.1146550). CBC News. 11 April 2012. Retrieved 2012-04-11.

- Carlson, Kathryn Blaze (2012-03-29). ["Federal budget kills the penny, cuts CBC spending"](https://nationalpost.com/news/canada/budget-2012-federal-canada). National Post. Retrieved 2012-03-29.

- Blackwell, Tom (30 March 2012). ["Government shutters agency that oversees Canada's fertility and assisted reproduction industry"](https://nationalpost.com/news/government-shutters-agency-that-oversees-canadas-fertility-and-assisted-reproduction-industry). National Post. Retrieved 2012-04-11.

- Curry, Bill (1 May 2012). ["Parks Canada hit hard as Ottawa doles out nearly 4,000 job notices"](https://www.theglobeandmail.com/news/politics/ottawa-notebook/parks-canada-hit-hard-as-ottawa-doles-out-nearly-4000-job-notices/article2418073/). [The Globe and Mail](/source/The_Globe_and_Mail). Retrieved 2012-05-01.

- DeMara, Bruce (10 April 2012). ["CBC cancels Connect and Dispatches in response to federal budget cuts"](https://www.thestar.com/entertainment/article/1159268--cbc-cancels-connect-and-dispatches-in-response-to-federal-budget-cuts). [Toronto Star](/source/Toronto_Star). Retrieved 2012-04-10.

- Dixon, Guy (10 April 2012). ["CBC cuts current-affairs shows, 88 news jobs"](https://www.theglobeandmail.com/news/arts/television/cbc-cuts-current-affairs-shows-88-news-jobs/article2397349/). [The Globe and Mail](/source/The_Globe_and_Mail). Retrieved 2012-04-11.

- Pugliese, David (4 April 2012). ["Defence Department cuts 1,000-plus civilian workers"](https://nationalpost.com/2012/04/04/defence-department-cuts-1000-plus-civilian-workers/). National Post. Retrieved 2012-04-11.

- Press, Jordan (29 March 2012). ["CBC takes a 10% federal funding cut in Canada's 2012 budget"](https://nationalpost.com/news/canada/cbc-takes-a-10-federal-funding-cut-in-canada-budget-2012). National Post. Retrieved 2012-04-11.

- Ryan, Andrew (19 April 2012). ["CBC puts Battle of the Blades on hold"](https://www.theglobeandmail.com/news/arts/television/cbc-cancels-battle-of-the-blades-as-part-of-budget-cuts/article2407570/?from=sec434). The Globe and Mail. Retrieved 2012-04-19.

- Schmidt, Sarah (11 April 2012). ["Cuts to food-safety inspection force will impact food quality in Canada: union"](https://nationalpost.com/news/canada/cuts-to-food-safety-inspection-force-will-impact-food-quality-in-canada-union). [National Post](/source/National_Post). Retrieved 2012-04-11.

- Smith, Joanna (11 April 2012). ["Federal budget 2012: Up to 100 food inspectors on chopping block, says union"](https://www.thestar.com/news/canada/politics/article/1159565--federal-budget-2012-up-to-100-food-inspectors-on-chopping-block-says-union). Toronto Star. Retrieved 2012-04-11.

- Payton, Laura (16 November 2012). ["Almost 11,000 federal jobs cut so far, Tony Clement says"](https://www.cbc.ca/news/politics/almost-11-000-federal-jobs-cut-so-far-tony-clement-says-1.1288838). [CBC News](/source/CBC_News). Retrieved 2012-11-16.

["High Arctic research station forced to close"](https://www.cbc.ca/news/science/high-arctic-research-station-forced-to-close-1.1171728). CBC. 28 February 2012. Retrieved 2012-07-09.

- ["Budget 2012 – Jobs, Growth, and Long Term Prosperity"](https://budget.canada.ca/2012/plan/chap6-eng.html). Department of Finance, Government of Canada. Retrieved 2025-04-29.

["Katimavik killed for 'ideological' reasons, Trudeau says"](https://www.cbc.ca/news/politics/katimavik-killed-for-ideological-reasons-trudeau-says-1.1277023). *[CBC News](/source/CBC_News)*. 5 April 2012. Retrieved 6 April 2012. ["National Aboriginal Health Organization's funding cut"](https://www.cbc.ca/news/canada/north/national-aboriginal-health-organization-s-funding-cut-1.1194520). *[CBC News](/source/CBC_News)*. 2012-04-09. Retrieved 2012-04-10.

## External links

- [Budget Plan](http://www.budget.gc.ca/2012/plan/toc-tdm-eng.html) of the [Government of Canada](/source/Government_of_Canada)

- [Harper Government Announces 10,980 Public Sector Positions Eliminated in Past Six Months](http://www.tbs-sct.gc.ca/media/nr-cp/2012/1116-eng.asp) at the [Treasury Board](/source/Treasury_Board)

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Adapted from the Wikipedia article [2012 Canadian federal budget](https://en.wikipedia.org/wiki/2012_Canadian_federal_budget) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/2012_Canadian_federal_budget?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.