VICTORIA: The Canadian Taxpayers Federation (CTF) today responded to the government's 2005 budget. The budget contained a series of spending promises, a sizable debt payment and some limited tax relief.

"For every dollar in tax cuts, there are $3 dollars in new spending," said Sara MacIntyre, the CTF's BC director.

"Health and education spending is once again on the rise, projected to increase almost $2 billion in three short years. Although tax relief did make it into the budget, it was targeted and sparse, with a small tax credit for low-income earners and a continuation of tax credits for the film and mining industries," said MacIntyre.

Some of the tax relief measures included: a non-refundable income tax credit for income earners under $26,000, an increase to the small business tax threshold to $400,000, an increase to the labour tax credit for domestic and foreign film productions, an extension of the Mining Exploration tax credit, as well as an increase to the homeowners grant.

"The government should be commended for including a sizable down payment on the debt, keeping it in check at $36.1 billion for this fiscal year. But, the debt has still managed to grow by almost $3 billion since the Liberal's came to power in 2001. It is disappointing that the government failed to use this opportunity to commit to a legislated debt retirement plan," MacIntyre noted.

The Budget includes a $1.7 billion debt payment and projects increases to the contingency fund as well as the forecast allowance over the next three years.

"The government is also becoming more active in so-called economic development projects, slowly and cavalierly eroding the Liberal commitment to end corporate welfare. Forestry, tourism, oil and gas and aquaculture are all receiving tax subsidies. Government should not be picking winners and losers," stated MacIntyre.