February 26, 1992

56 pages

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RRA D IVR ROK

federal budget delivered Tuesday by Finance Mini

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WEDNESDAY

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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