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1979 Canadian federal budget

The 1979 Canadian federal budget was presented by Minister of Finance John Crosbie in the House of Commons of Canada on 11 December 1979.[1] It was the first and only Canadian federal budget presented under the premiership of Joe Clark. It was never adopted, as the government was defeated in a vote of confidence on a budget subamendment on December 13, 1979.

Presented

11 December 1979

31st

Progressive Conservative

John Crosbie

GDP growth and employment took a turn for the better, with strong recovery of business investment;

Balance of payments and external trade balance seriously deteriorated due to slowing exports to the US (due to the weak economy there) and increasing imports (especially of foreign-made machinery and equipment);

Inflation still remained high with CPI increase of 9% over 1978.

The budget is tabled six-and-a-half months after the 1979 Canadian federal election where the Progressive Conservatives led by Joe Clark won 136 seats, falling 6 seats short of a majority. On paper, support from any one of the three other official status parties (Liberal, NDP or Social Credit) would be enough to pass a budget should all the PC MPs vote likewise.


The economic climate was still precarious with a series of mixed signals during 1979:[2]

Introduction of a refundable energy tax credit: to ease the impact of the proposed energy tax, the government planned for the introduction of an income-tested refundable tax credit of up to $80 per adult and $30 per child.

[3]

Introduction of the Mortgage Interest and Property Tax Credit: scheduled to be phased in over 3 years (1980 to 1982).[4] That measure is not included in the Notice of Ways and Means Motion tabled along the budget.

[3]

Creation of the Canadian Common Stock Investment Plan to encourage savings in common stocks of businesses in Canada

[3]

Refundable Quebec abatement: the government planned to make the Quebec abatement refundable for the portion in excess of federal tax payable, starting in the 1980 fiscal year.

Aftermath[edit]

Following the fall of the government, Pierre Elliot Trudeau decided to walk back his resignation from the leadership of the Liberal Party. Trudeau ended up defeating Joe Clark, and in the 1980 Canadian federal election the Liberals were swept back into power with a majority government.

(PDF). Ottawa. 11 December 1979. Retrieved 12 September 2021.{{cite book}}: CS1 maint: location missing publisher (link)

Budget Speech 1979

(PDF). Ottawa. 11 December 1979. Retrieved 12 September 2021.{{cite book}}: CS1 maint: location missing publisher (link)

Budget Papers 1979

(PDF). Ottawa. 11 December 1979. Retrieved 12 September 2021.{{cite book}}: CS1 maint: location missing publisher (link)

Budget in Brief 1979