While I have never been a fan of running deficits tomorrow to pay for the needs of today, I do believe that Budget 2009 comes at our economic problems from the right direction.

The introduction of deficit spending by this Conservative government is an indication of the speed with which the economy slumped. That rapid decline is illustrated in the difference between our Economic Statement released on November 27 and Budget 2009 released on January 27. Our optimism in November was based on an average of four private-sector forecasts, combined with proposed spending restraint measures. The international situation changed fast, and so did the forecasts.

As a result, Budget 2009 takes immediate corrective measures to help Canadian families and stimulate consumer spending. Families deserve to keep more of their own money to meet their needs. Our Conservative government has made that principle a cornerstone since we took office.

Our substantial tax relief programs have been providing stimulus to Canada’s economy for some time. Canada’s Economic Action Plan builds on this and we are providing even more tax relief by letting Canadians earn more money before they pay a higher tax rate.

We are building on the benefits that already exist for low-income Canadians. The Working Income Tax Benefit is being increased to add incentive for Canadians to join and remain in the workforce.

Budget 2009 also brings increased support for seniors. We are increasing the Age Credit Amount by an additional $1,000 and we are reducing the amount Canadian seniors are required to withdraw from their Registered Retirement Income Funds by 25 percent for 2008.

Over the next five years, our personal income tax measures will put about $20 billion back in Canadians’ hands. Canada’s Economic Action Plan freezes Employment Insurance payroll taxes for the next two years, so employers can create and maintain jobs, and give the workers they employ more money to take home to their families.

The new budget gives a shot in the arm to the home construction and home renovation industries to help drive the economy. It allows first-time homebuyers more flexibility to withdraw from RRSPs to make their purchase, and gives them a tax break on their closing costs. We are also helping Canadians invest in the value of their homes, while putting trades people to work and boosting building product sales.

The budget also provides for building and renewing our municipal, provincial, and territorial infrastructure. This will create jobs and enhance our post-secondary, research and health infrastructure, and our key federal assets.

No one likes to run a deficit, but if there is no option, it should be used to give Canadians a safe landing and improve the country we have carefully built for generations.

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The audio version of Garry's February 2, 2009 op-ed column can be heard by clicking here