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A worker at a Toronto home improvement store inspects inventory on Saturday, Jan. 30, 2010. Stores reported a rush of customers in advance of the Feb. 1 deadline for the home renovation tax credit.

No new spending or tax breaks in federal budget

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CTV National News: Robert Fife on the budget
Senior government officials say there will be no new spending or tax breaks included in the upcoming federal budget, and the popular home renovation tax credit will not be renewed.

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A worker at a Toronto home improvement store inspects inventory on Saturday, Jan. 30, 2010. Stores reported a rush of customers in advance of the Feb. 1 deadline for the home renovation tax credit.

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A worker at a Toronto home improvement store inspects inventory on Saturday, Jan. 30, 2010. Stores reported a rush of customers in advance of the Feb. 1 deadline for the home renovation tax credit.

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Date: Mon. Feb. 22 2010 10:01 PM ET

Canadians should not expect any new spending in next month's federal budget, nor should they look for tax cuts or an extension of the popular Home Renovation Tax Credit, a senior government official told the media.

Journalists who gathered in Ottawa on Monday to get a sneak peek at the budget also learned that spending on pensions and health care, as well as education transfers to the province, will not be cut.

CTV's Ottawa Bureau Chief Robert Fife reported that $19 billion from the government's economic action plan will go ahead as planned this year, but there will be no more stimulus money after that.

He also said a freeze on employment insurance premiums will be lifted in 2011.

"They're trying to dampen expectations that this budget is going to be chock-full of major spending," Fife said. "They want the prime minister to be perceived as a hands-on manager who is serious about restraining spending once the economy recovers."

On Dec. 30, Prime Minister Stephen Harper asked the Governor General to prorogue Parliament until March 3, when his government will return with a Speech from the Throne. Flaherty will deliver his budget on Mar. 4.

The budget will contain a "road map for eliminating the deficit," Fife said, which has hit $56 billion. It will also include a job-creation plan.

While Flaherty had already made clear this would be a "stay the course" budget, the opposition pounced on the new details.

"Having prorogued Parliament ostensibly to recalibrate and plan the budget, the government is now saying the budget will contain essentially nothing," said Liberal finance critic John McCallum.

"That kind of contradicts their rationale for prorogation."

While some budget details usually trickle out to the media in the days before the document is tabled, NDP finance critic Thomas Mulcair said Monday's preview showed a lack of respect for the tradition of budget secrecy.

"Once again the Conservatives have failed to respect our parliamentary traditions and we will be holding them to account when Parliament finally gets back to work next week."

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