Big Rise In Canada’s Government Spending

Press, Volume CI, Issue 29748, 15 February 1962, Page 5

Big Rise In Canada’s Government Spending

(N Z.P.A.-Reuter—Copyright)

OTTAWA, Feb. 14

An increase in Federal spending to record levels was indicated this week as the Canadian Government put before Parliament a basic programme of 6.276.211,594 dollars in budgetary expenditures for the coming financial year. The Blue Book of Spending Estimates, tabled in the House of Commons by the Minister of Finance (Mr Donald Fleming) was just a beginning for the year starting on April 1. Canadian Press reported. Another 736,700,000 dollars in estimated costs of the enlarged old age pensions programme would boost the spending forecast to 7,012,911,594 dollars. Supplementary outlays as the year progressed could add many millions to that. The basic budgetary spending programme compared with on e of 6.123,785,182 dollars put before Parliament in January last year.

The pensions, paid to al! aged 70 and over, were not included in the estimates of budgetary expenditures.

With the new 10 dollar increase to 65 dollars a month combined with increased numbers at pensioners, it was estimated last week that the programme’s cost would rise to 736.700,000 dollars. Pensions, administered separately, are financed by special 3-per-cent. income taxes on personal and corporation income and a 3-per-cent. sales tax.

Costs of social security, aid to the jobless and the country’s expanding transportation system were among the main factors expected to increase spending next year.