$34 billion deficit projected in new budget

Federal Finance Minister Jim Flaherty is projecting a $33.7 billion deficit - the first in over a decade - as he tabled the 2009 budget in the House of Commons today.

The budget is designed to stimulate Canada's economic growth during a global recession, Flaherty [shown] said.

The budget proposed $20 billion in cuts to personal income tax.

The basic personal exemption will be raised from $9,600 to $10,320, while the lowest income tax bracket will jump to $40,726 from $37,885.

This represents a $148-a-year savings for a one-income, two-children family making $40,000 a year.

The 22 percent tax bracket will jump to $81,452.

The budget proposes a two-year freeze on Employment Insurance (EI) premiums, while allowing benefits to be collected for 50 weeks - an increase of five weeks.

A billion dollar training fund, to be administered by EI, is also proposed in the budget.

This is in addition to a $500 million fund for the self-employed and others who fail to qualify for EI training.

The fund would be administered over two years.

The age credit for seniors will rise by $1,000.

The budget also proposes a tax credit of up to $1,350 for home-owners who renovate, while those purchasing their first home will become eligible for a $750 tax discount.

The government also promises $515 million for school, water and community services projects for First Nations.

Both the NDP and Bloc Quebecois have stated they would voted against the budget.

Liberal Leader Michael Ignatieff will review the budget tonight with key advisers, and announce his party's intentions at a news conference tomorrow, he said.