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Budget won't cover Martin's promises: report

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CTV.ca News Staff

Date: Tue. Mar. 16 2004 2:40 PM ET

Some of Prime Minister Paul Martin's biggest Throne Speech promises will have to be put on hold. A published report suggests a shortage of cash in the upcoming budget doesn't leave room for many new programs.

According to a report in The Globe and Mail, Canadians shouldn't expect any new programs in health, defence, international or aboriginal affairs.

And new spending, for cities and the environment for example, won't go beyond funding levels that have already been announced -- because there simply isn't enough money to pay for more.

The government outlined an ambitious agenda in the February speech from the throne, but now it appears necessary to choose priorities.

On health care, the budget won't go beyond a one-time boost of $2 billion for the provinces.

Despite a throne speech promise to improve aboriginal Canadians' "shameful" living conditions, last week Martin told native leaders the budget would have nothing for them.

Since listing defence and foreign affairs as throne speech priorities, the PM has said department policies must be overhauled before new spending can be considered.

Canada's cities will also be put on the waiting list, as a pledge to share part of the federal gas tax is delayed. They are expected to be granted the promised reprieve on the goods and services tax.

And the environment and climate change aren't expected to command more than the promised $3.5 billion over 10 years -- unless Martin makes good on his government's promise to sell $2.5 billion in Petro Canada stock.

Only one new spending promise appears likely -- a multimillion-dollar federal budget bailout for Canada's beef industry. Refusing to confirm the report, Martin said Monday the mad-cow crisis remains a top priority with him.

"I think the government does have a responsibility to support the cattle industry," the prime minister told reporters in northern Quebec.

"I have met with them (producers) myself in Eastern and Western Canada and I hope we can announce something soon."

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