February 26, 1992

56 pages

Office, Editorial 985-2131

RRA D IVR ROK

federal budget delivered Tuesday by Finance Mini

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WEDNESDAY

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Author Sarah Ellis
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NEWS photo Mike Waketleld

LACING UP her figure skates for a practice is 14-year-old Nadine O'Neill from
Sydney, Austrailia. O’Neill, who skates at the novice level, will be one of 900
skaters to take part in the North Shore Winter Club’s March 5 to 8 Interna-

tiona! Skating competition.

et cuts spend

Defence budget to be slashed by $2.2B;
feds to cut 1992-93 spending by $1B

NORTH VANCOUVER Tory MP Chuck Cook said the

er Don

Mazankowski will go a long way to helping out individual

taxpayers.

Defence spending, salaries and
the operating budgets of govern-
ment departments were all cut in
Mazankowski's first budget as fi-
nance minister.

Mazankowski said the federal
government will cut spending by
$1 billion in 1992-93 and by a
further $7 billion over the next

By Surj Rattan
News Reporter

five years.

The new federal budget will also
chop $2.2 billion from defence
spending over the next five years.

In addition, the non-wage

Operating budgets of government
departments will be cut by 3%,
and Ottawa’s  comimunications
budget will also be slashed.

Prime Minister Brian Mulroney
and all federal cabinet ministers
will all take $% wage cuts.

There were no new federal tax
increases announesd in the
budget.

Other budget highlights:

@ the elimination of first-class air
travel tor all MPs, senators and
senior public servants;

@ the deficit will be reduced from
$31.4 billion in 1991-92 to $27
billion in 1992-93;

@the Canada Mortgage and
Housing Corp.'s social housing
budget will be timited to a 3%
annual increase, and the co-
operative housing program has
been eliminated;

@ forty-six separate government
entities will be eliminated, defer-
red, privatized or merged with
other operations;

@ Crown corporations will con-
tinue to be privatized;
@ low- and middle-
lies will receive single
child tax benefits;

@ disabled Canadians will receive
more favorable tax treatment for

come fami-
monthly

medical expenses and education;

@ the education credit for full-
time study will be increased:

@ the general personal income tax
surcharge will be reduced by 1%
(from 5% to 4%) on July 1, 1992
and a further 1% on Jan. 1, 1993:
@ the new Home Buyers’ Plan
will allow Canadians to withdraw
up to $20,000 tax-free from ex-
isting RRSPs to buy or build a
principal residence:

@ the Small Business Financing
Program will help small businesses
and farmers obtain low-interest
loans.

“Tt was as good a budget as
could be expected, but it could
have been better. It’s a move in
the right direction,"’ said Coo