Action Plan

 Deepest recession since World War II

 Department of Finance Canada created a plan

 Economic Action Plan introduced in January 2009

 Since introduced, economy has shown signs of stability

 Recovery fragile; recent improvement “modest”

THE CHALLENGE

Canada’s Economic Action Plan has helped Canadians through the worst global recession since the 1930s and is now contributing to a solid economic recovery. However, global economic growth remains fragile and, at home, too many Canadians remain out of work. The continued implementation and completion of the Economic Action Plan will help ensure the strength of the recovery in Canada.

We will stay on this course. Completion of the Economic Action Plan is this Government’s focus. Today’s report indicates 98 per cent of all Economic Action Plan spending for 2010–11 is committed. More than 23,000 projects have been committed to, with close to 22,500 completed or underway.

At their June meeting in Toronto, Group of Twenty (G-20) leaders were in broad agreement on the need to follow through on delivering existing stimulus to strengthen the international recovery.

They also recognized, however, the need to wind down fiscal stimulus going forward, and committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016. Budget 2010 laid out a plan that goes beyond this commitment, bringing Canada’s finances back to balance over the medium term—well before any other Group of Seven (G-7) country. As part of this plan, the Government will follow through on the “exit strategy” built into the Action Plan by allowing temporary stimulus measures to end as the economy recovers.

The implementation of Canada’s Economic Action Plan continues to be timely and effective. The Action Plan protects Canadian jobs and incomes by delivering a $62-billion shot in the arm to the economy (Table 1.1). Taxes have been reduced, EI benefits have been extended for the unemployed,...