The 2005 Canadian budget was the budget of the Government of Canada for the 2005-2006 fiscal year. It presented on February 23, 2005 by Finance Minister Ralph Goodale. It was the first federal budget presented by a minority government in Canada since the budget presented by the minority government led by Joe Clark in 1979. The defeat of that budget led to an election in which Clark's Progressive Conservative Party of Canada was defeated. February 23 is the 54th day of the year in the Gregorian Calendar. ... 2005 is a common year starting on Saturday of the Gregorian calendar. ... The Minister of Finance is one of the most important positions in the Cabinet of Canada. ... Ralph Edward Goodale (born October 5, 1949, in Regina, Saskatchewan) is Canadas current Minister of Finance. ... For minority régime, see Apartheid. ... The Right Honourable Charles Joseph Clark, PC,CC (born June 5, 1939) was the sixteenth prime minister of Canada from June 4, 1979, to March 2, 1980, and a prominent Canadian politician until his retirement in 2004. ... 1979 is a common year starting on Monday. ... The Progressive Conservative Party of Canada (PC) was a Canadian centre-right conservative political party that existed from 1867 to 2003. ...

Having fewer than half the seats in the Canadian House of Commons meant that the governing Liberal Party of Canada had to win the support of members of other parties for the 2005 budget to pass. Without that support, the budget would be defeated, and new elections would likely be called. The House of Commons (French: Chambre des communes) is a component of the Parliament of Canada, which also includes the Sovereign (represented by the Governor General) and the Senate. ... The Liberal Party of Canada (French: Parti libéral du Canada) is Canadas largest political party. ...

The government is facing a large surplus of expected revenues over expenses, meaning that the government would be able to fund a wide array of new initiatives.

The budget was the eighth balanced budget in a row presented by the Liberal government. The budget contained minor tax cuts for both businesses and individuals over the next five years. These cuts, however, would mostly come in the latter years of the five-year period, which means that the majority of them would likely not occur before a new election is held.

The personal income tax cut offered will raise the basic personal exemption to $10,000 from its present level of just over $8,000 over the next five years. This will mean an average tax savings of $16 for each Canadian in 2006 with the final total reaching $192 several years down the road. However, the basic personal exemption is already indexed to inflation and, therefore, would be scheduled to rise to roughly $9,000 over the next several years in any case.

The budget also contained $12.7 billion for the Department of National Defence over the next five years. However, not all of this money is new funding and, as with most of the budget, it is back-loaded. The total new funding for 2006 will be $500 million. The Department of National Defence, frequently referred to by its acronym DND, is the department within the government of Canada with responsibility for Canadas military, the Canadian Armed Forces. ...

Start-up money was provided for Canada's efforts to comply with the Kyoto Accord and for a national child care program. Additional funding was provided for cities, health care, and foreign aid. Earth as seen by Apollo 17 The Kyoto Protocol is an amendment to the United Nations Framework Convention on Climate Change (UNFCCC), an international treaty on global warming. ... Childcare is the act of caring for and supervising minor children. ...

Some cuts were made. The Air Travel Complaints Commissioner was abolished, and foreign aid to Thailand, Malaysia, and all countries now in the European Union was ended. In total, $11 billion in savings are expected.

The budget, as expected, displeased the Bloc Québécois who were demanding an overhaul to employment insurance and the elimination of the fiscal imbalance. The Bloc voted against the budget. The Bloc Québécois is a federal political party in Canada that is primarily devoted to promoting sovereignty for the province of Quebec. ... Unemployment benefits are sums of money given to the unemployed by the government or a compulsory para-governmental insurance system. ... Fiscal imbalance (in French, déséquilibre fiscal) is the term used in Canada to describe a monetary imbalance between the Canadian federal government and the provincial governments. ...

The Conservative Party, the largest opposition party, surprised many by announcing that it would support the budget immediately after it was read in the House of Commons. Party leader Stephen Harper described it as "better than expected", and described its focus on tax cuts and defence spending as being in line with Conservative policy. It is highly unusual for the official opposition to vote in favour of the government's budget. However, Harper later changed his position on the budget, and his party launched the largest abstention in Canadian history. The Conservative Party of Canada (French: Parti conservateur du Canada) is a right wing political party in Canada, formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in December 2003. ... Stephen Harper The Hon. ... Her Majestys Loyal Opposition in Canada is usually the largest parliamentary opposition party in the Canadian House of Commons. ...

The New Democratic Party initially voted against the budget. Leader Jack Layton was critical of the corporate tax cuts and the limited new funding for social programs. The New Democratic Party (NDP) (French: Nouveau Parti démocratique (NPD)) is a social democratic political party in Canada. ... Jack Layton The Honourable John Gilbert Jack Layton, P.C., M.P., (born July 18, 1950, Hudson, Québec) is a social democratic Canadian politician, a former Toronto, Ontario city councillor, and the current leader of Canadas New Democratic Party. ...

When the budget came to its second reading, with the Conservatives rallied against it after new revelations in the Gomery Inquiry, the NDP struck a deal with the Liberals for a reduction of the foreseen corporate tax cuts and $4,6 billion in spending on social programs. The Gomery Commission, formally the Commission of Inquiry into the Sponsorship Program and Advertising Activities, is a federal Canadian commission headed by the retired Justice John Gomery for the purpose of investigating the sponsorship scandal, which involves allegations of corruption within the Canadian government. ...

On May 17, Conservative MP Belinda Stronach crossed the floor to the Liberals, giving them a crucial extra vote. Two Conservative MPs from Newfoundland and Labrador, Loyola Hearn and Norman Doyle, were also pressured by their constituents -- and by provincial premier Danny Williams -- to vote in favour of the budget, as it included the provisions of the government's recent Atlantic Accords. May 17 is the 137th day of the year in the Gregorian Calendar (138th in leap years). ... Belinda Stronach Belinda Stronach (born May 2, 1966 in Newmarket, Ontario) is a Canadian businessperson, politician and a Conservative Member of Parliament (MP) in the Canadian House of Commons. ... In politics, crossing the floor is to vote against party lines. ... Motto: Quaerite Primum Regnum Dei (Seek ye first the kingdom of God) Other Canadian provinces and territories Capital St. ... Loyola Hearn (born March 25, 1943 in Renews, Newfoundland) is a Canadian politician. ... Norman E. Doyle (born November 11, 1945 in Avondale, Newfoundland and Labrador) is a Canadian politician. ... Danny Williams (born August 4, 1950) is a Canadian businessman and politician. ...

As the seats of the Liberals and the NDP (and Carolyn Parrish, who supported the budget) equalled those of the Conservatives and the Bloc, the fate of the government then hung on the voting choices of two independent MPs: David Kilgour and Chuck Cadman. The Conservatives eventually announced that they would vote in favour of the main budget bill, but would vote against the second bill containing the NDP amendments. Carolyn Parrish (born October 3, 1946 in Toronto, Ontario) is a Canadian teacher and politician. ... The Honourable David Kilgour (born February 18, 1941 in Winnipeg, Manitoba) is a Canadian politician. ... Chuck Cadman (born February 21, 1948) is a Canadian politician. ...

On May 19, votes were held for second reading of Bill C-43 (the main budget) and Bill C-48 (the amendment). The main budget bill passed on a vote of 250 to 54, with only the Bloc Québécois voting against. The second bill received a vote of 152 Yea and 152 Nay. The Conservatives and Bloc Québécois voted against second reading, while the Liberals and NDP voted in favour. Conservative MP Darrel Stinson was unable to attend the vote due to cancer surgery, so Liberal MP Peter Adams agreed to sit out as a courtesy. Independent MP David Kilgour voted against the budget, while Carolyn Parrish and Chuck Cadman voted in favour. In the event of a tied vote, the Speaker is required to cast the tie-breaking vote. According to Parliamentary procedure, the Speaker is required to vote, whenever possible, for the continuation of debate. Thus, the Speaker voted in favour of second reading, "to allow the House time for further debate so that it can make its own decision at some future time." May 19 is the 139th day of the year in the Gregorian Calendar (140th in leap years). ... Darrel Stinson is a Canadian politician representing the Okanagan—Shuswap for the Conservative Party of Canada. ... Peter Adams (born April 17, 1936 in the United Kingdom) is a Liberal Member of Canadas House of Commons. ...

External links

• Department of Finance - Budget 2005 speech text (http://www.fin.gc.ca/budget05/speech/speeche.htm)
• Transcript of Parliamentary proceedings surrounding second reading of Bills C-43 and C-48 (http://www.parl.gc.ca/38/1/parlbus/chambus/house/debates/102_2005-05-19/HAN102-E.htm#SOB-1296884)