It's tradition for a finance minister to buy a new pair of shoes for budget day.
This year, the footwear Tom Marshall bought wasn't for wearing, but rather symbolized the province's focus on children and families.
As he entered the budget lockup for a scrum with reporters, he held up a tiny pair of blue, ceramic baby boots which cost $1.47.
"It's all about the future and it's all about our children," Marshall said of his third budget and the seventh from the Danny Williams administration.
"It's all about our goal to have an economy and to have a government that's totally self-reliant and can stand on its own."
Among the expenditures which will benefit children are $167 million for the Department of Child, Youth and Family Services, and a total investment in education of $1.3 billion.
The investment in health is double that at $2.7 billion, up 10 per cent over last year.
All told, the government's budget is worth $7 billion, and it plans to run a deficit of $194 million.
Asked if that debt goes against the theme of the budget - since the next generation will have to help pay off what's being spent this year - Marshall disagreed.
"Yes we're running a deficit," he said. "But we have cash to pay for that deficit. We will not increase our borrowing. Our debt will go up, but we don't have to borrow for that."
Marshall also said as the province continues to recover from the recession, it needs to keep the momentum going.
"We're concerned about the fragility of the ... global economic recovery," he said.
That's why he announced $1 billion in infrastructure spending this year as well as $48.5 million in tax cuts.
He contends both measures will stimulate the economy.
"Obviously, I don't like to run deficits, but if I've got to fight a recession ... if we've got to get the economy booming again, then I'm not afraid to spend money and we're not afraid to lower taxes to stimulate the economy - that's good public policy," the minister said.
When it comes to tax cuts, people in the middle income tax bracket will see their rate drop by 0.3 per cent to 12.5 per cent. Those in the upper income tax bracket will see a drop from 15.5 per cent to 13.3.
The Tories had promised to make the tax rate in all brackets in this province the lowest in Atlantic Canada, Marshall said.
He said the province is keeping pace with New Brunswick, which recently announced tax cuts.
Marshall said it's also important to keep tax rates low to attract skilled professionals to the province, and he said the two tax brackets targeted this time will affect those professionals - social workers and medical professionals, engineers and teachers.
"We have to attract people here," he said. "We have to attract skilled trades here. We're going to have jobs and we need people here to fill them."
There are also tax breaks for seniors and small businesses.
The only increase in taxes affects tobacco products.
Cigarettes have gone up one cent per smoke and the tax on fine-cut tobacco went from 30 cents to 32 cents a gram.
dbartlett@thetelegram.com
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In budget 2010, the province announced $48.5 million in tax cuts. Here is a breakdown of where people and businesses will save.
Middle tax bracket (annual income between $31,278 and $62,556) will see a tax reduction from 12.8 per cent to 12.5 per cent.
Highest tax bracket (annual income more than $62,556) will see a tax reduction from 15.5 per cent to 13.3 per cent.
Taxable income / Savings
$40,000 / $26 or 1%
$50,000 / $56 or 1.4%
$60,000 / $86 or 1.6%
$70,000 / $258 or 3.8%
$80,000 / $478 or 5.8%
People over 65 will now get a non-refundable tax credit of $5,000, up from $3,681 last year.
The maximum amount seniors can receive from the low-income seniors benefit - a refundable tax credit - will rise to $900 from $803 a year.
The small business tax rate will be cut from five per cent to four per cent.
The dividend tax credit will go up to 11 per cent from 9.75 per cent.
Source: Budget 2010
Here is a comparison of last year's budget estimates for revenues, expenditures and the projected deficit compared to the actual numbers, as well as the projections for the coming year.
In budget 2009
Projected revenues: $6 billion
Projected expenditures: $6.7 billion
Projected deficit: $750 million
Updated estimates for the 2009-2010 fiscal year, released Monday
Revenues: $6.6 billion
Expenditures: $6.9 billion
Estimated deficit: $295 million
In budget 2010
Projected revenues: $6.8 billion
Projected expenditures: $7 billion
Projected deficit: $194 million
Source: Budget 2010
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