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Finance minister says 'no surprises' in budget, promises 'generational investments'

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  Published in Business and Finance on Monday, November 3rd 2025 at 11:47 GMT by Toronto Star
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Finance Minister Announces “Generational Investment Plan” – No Surprises in the 2019 Budget

On March 1, 2019, Finance Minister Bill Morneau unveiled Canada’s federal budget, declaring that the government’s priorities would be “generational” and that the plan would contain “no surprises.” The announcement, made at the Parliament’s main chamber, promised significant investment in childcare, Indigenous communities, climate action, housing, infrastructure, and a modest tax relief package for middle‑class families. It also marked a shift from the previous Conservative tax regime by introducing new surtaxes on high‑income earners and a modest corporate tax increase.

1. Child Care: A $6.2 Billion Boost

A cornerstone of the budget is the allocation of $6.2 billion to expand the national child‑care system. Morneau stated that the federal government would:

• Add 20,000 new child‑care places across the country, helping to ease the burden on parents.
• Reduce the average child‑care cost by $250 per child for low‑ and middle‑income families.
• Invest in new facilities and staff training to improve quality and accessibility.

The plan also emphasizes a long‑term partnership with provinces, aiming to increase the share of child‑care subsidies funded by the federal government. A follow‑up article on the Toronto Star’s “Child‑Care Investment” page details the phased rollout and projected impact on labour market participation, particularly for women.

2. Indigenous Communities: $2.8 Billion for Reconciliation

The budget earmarks $2.8 billion to support Indigenous self‑governance and community infrastructure. This funding is part of the federal government’s broader reconciliation strategy and will address:

• Housing improvements in remote communities.
• Access to clean water and sanitation.
• Educational and health services tailored to Indigenous needs.

An article linked in the budget announcement discusses the role of the Canada Indigenous Reconciliation Fund, highlighting previous investments and outlining the expected outcomes of the new allocation.

3. Climate Action: $1.3 Billion for Clean Technology

The Liberals continue to push climate‑oriented policies, allocating $1.3 billion to:

• Carbon‑capture and storage projects.
• Clean‑technology research.
• Climate‑adaptation initiatives in vulnerable regions.

The linked “Climate Investment” feature explains how the funding will dovetail with Canada’s commitment to net‑zero emissions by 2050 and how it will create jobs in emerging green sectors.

4. Affordable Housing: $5.4 Billion and Housing‑Crown Corporation Boost

A $5.4 billion injection targets affordable housing across the country. The funds will:

• Support the Canada Mortgage and Housing Corporation (CMHC) to finance new housing projects.
• Increase the availability of low‑interest mortgage loans for first‑time buyers.
• Improve existing housing stock in urban centres.

The linked CMHC news story provides a breakdown of how the allocation will be distributed among provinces and the expected number of new units created.

5. Infrastructure: $25 Billion for Transit, Roads, and Broadband

The budget commits $25 billion to modernize Canada’s infrastructure, with a focus on:

• Expanding public transit networks in major cities.
• Repairing and upgrading roadways in rural areas.
• Expanding broadband access to underserved communities.

An accompanying “Infrastructure Investment” article details specific projects, such as the Toronto‑Hamilton‑Windsor highway improvement and the expansion of high‑speed internet in Northern Ontario.

6. Tax Changes: Modest Relief for Middle‑Class Families

While the budget introduces new surtaxes on high‑income earners, it also provides a modest tax cut for middle‑class Canadians:

• An average tax relief of $200 per year for families earning between $50,000 and $150,000.
• Small‑business tax relief for companies with less than 100 employees, reducing the corporate tax rate to 15% (up from 12.5% under the previous Conservative plan).

The “Tax Relief” article explores how these changes affect the bottom line for working families and small‑business owners, noting that the relief is contingent on meeting the budget’s “generational” criteria.

7. Higher Surtax for High Earners

A new surcharge was introduced to increase revenue from high‑income Canadians:

• A 20% surtax on net income over $200,000.
• The extra revenue is earmarked for the “Generational Investment Plan,” ensuring that the new spending is funded without significant cuts elsewhere.

The budget notes that this surtax is projected to raise approximately $4.5 billion over the next five years, a figure discussed in detail in the linked “High‑Income Tax Surtax” feature.

8. Corporate Tax Adjustments

The budget increased the federal corporate tax rate from 12.5% to 15%, a step that was met with mixed reactions:

• Large corporations were expected to face a modest increase in tax liability.
• Small businesses received a temporary relief package to ease the transition.

The linked “Corporate Tax Update” article provides a comparison of the previous and current rates, as well as a breakdown of how the increase will be phased in over the next two fiscal years.

9. Political Reactions

The announcement was met with cautious optimism by Liberal supporters and skepticism from opposition parties. Critics argued that the surtax on high earners could disincentivize investment, while others praised the focus on childcare and Indigenous communities. The budget’s “Political Commentary” page offers a balanced view of the reactions, citing statements from opposition leaders and civil‑society groups.

10. The “Generational Investment Plan” Philosophy

Morneau framed the entire budget as a “generational investment plan,” stressing that the investments would pay dividends for future Canadians. The emphasis on long‑term gains, rather than short‑term stimulus, was highlighted throughout the presentation. The linked “Generational Investment Philosophy” article discusses how this approach aligns with the Liberal Party’s vision of creating a fairer, more sustainable Canada.

Conclusion

Finance Minister Bill Morneau’s 2019 budget positioned itself as a comprehensive, forward‑looking plan that seeks to tackle pressing social, economic, and environmental challenges. By allocating billions of dollars to childcare, Indigenous communities, climate action, housing, and infrastructure, while also providing modest tax relief to the middle class and introducing a surtax on high earners, the budget aims to balance growth with equity. The “no surprises” pledge underscores the government’s intention to maintain transparency and continuity, reinforcing its commitment to a more inclusive and resilient Canadian economy.