Federal budget cuts 19,000 public sector jobs, kills the penny

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The 2012 federal budget cuts up to 19,000 public sector jobs. It’s also killing the penny and will raise old age security eligibility to 67.

Highlights from the Conservative government’s 2012 budget, released Thursday:

  • Production of the penny to cease this fall, saving an estimated $11 million a year.
  • Deficit projected to fall $8.5 billion, to $24.9 billion for 2011-12, to decline to $21.1 billion next year and to disappear by 2015.
  • More than $5 billion in cuts to annual federal spending by 2014-15.
  • Job cuts: 19,200 federal positions to be eliminated, or 4.8 per cent of the federal workforce.
  • Age of eligibility for old age security and the guaranteed income supplement to gradually move to 67 from 65, beginning in 2023.
  • $5.2 billion over 11 years to renew and refit the Canadian Coast Guard’s fleet of vessels and helicopters.
  • Eligible Canadians to be allowed to defer old age security for a maximum of five years, beginning in 2013, in exchange for higher benefits.
  • $1.1 billion in research and development over five years, plus $500 million to encourage venture capital investment by the private sector.
  • First Nations reserves: $275 million over three years for schools and education, $330.8 million over two years to improve water systems and water quality.
  • CBC to lose 10 per cent of annual funding.
  • Return $130 million in fees to nearly 300,000 would-be Canadian immigrants to eliminate backlog in skilled-worker applications.
  • $482 million over two years to improve the effectiveness of the employment insurance system, including incentives for accepting work and ensuring benefit levels align with local labour market conditions.
  • Cap on annual increases to employment insurance premiums until operating budget is balanced.
  • $205 million for a one-year extension of a temporary hiring credit for small businesses.
  • $50 million over two years to provide job skills training for young people.

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