Budget receives mixed reaction

Tuesday’s federal budget received both positive and negative reactions.

The proposal to extend the duration of compassionate care benefits from the current six weeks to six months, as of Jan. 2016, received positive marks.

“Expanding the compassionate care benefit will benefit cancer patients, their families, and our healthcare system,” says Pamela Fralick, president and CEO of the Canadian Cancer Society. “It will enable more Canadians to receive care at home and reduce costly hospital stays, while providing badly needed financial security for families touched by cancer.”

CARP says the extension will provide a much needed boost in time to working caregivers who need to provide care to family members and it will also prevent the loss of income many heavy care providers face when forced to step away from employment to provide care.

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The government also proposed to renew the mandate of the Mental Health Commission of Canada (MHCC) for another 10 years, beginning in 2017–18.

HealthCareCAN, the national voice of hospitals and healthcare organizations, says it’s “encouraged” by the extension and it looks forward to an increased annual budget for the MHCC.

There was also an announcement about increased infrastructure spending, such as providing an additional $750 million over two years, starting in 2017–18, and $1 billion per year ongoing thereafter for a new public transit fund.

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“We support the increased funding for infrastructure, most notably the recognition that P3 alternative financing can be an effective contributor,” says Canadian Life and Health Insurance Association president and CEO Frank Swedlove.

The increase in the annual TFSA contribution limit to $10,000 from $5,500 received positive reaction from CARP.

“CARP members will welcome the proposals that will help them save and manage their savings for their retirement needs,” says Susan Eng, the organization’s vice-president, advocacy.

But not everyone was enthusiastic about the increase.

“Expanding TFSA [contribution limits] does almost nothing to help the over 11 million Canadians without a work place pension,” says Paul Moist, national president of CUPE. “Instead of expanding the Canada Pension Plan—widely seen as the most effective, efficient and affordable way to keep seniors out of poverty—the Conservatives only offer another tax shelter for the rich.”

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The Broadbent Institute says the increase means the great majority of Canadians would enjoy no significant benefits with the expansion but will bear the burdens of an expanded TFSA by enduring reduced public services or bearing the increased taxes needed to offset the lost revenues.

“This budget should be called the inequality budget,” says the organization’s executive director, Rick Smith. “It leaves out Canadians that need a break and hands billions to the country’s wealthiest families that don’t need a leg up. This approach is unfair, expensive, and just plain bad public policy.”

Looking for related stories? Read more of our coverage of the 2015 federal budget.