Economy: The wealth and resources of a country or region, particularly in terms of the production and consumption of goods and services.
Budget: A financial plan or forecast that shows a breakdown of money to be received and money to be spent for a specific period. The Federal government releases an annual budget every spring
Balanced Budget: When the amount of revenue equals the amount of expenses
Deficit: When the government has more expenses than revenues, and must borrow money to cover the gap
Debt: The amount of money borrowed over time that the government needs to repay
Taxes: The federal government collects money from different sources to pay for its expenses. There are 4 main types of taxes:
Personal Tax: Money collected from individuals based on the money they make from jobs and investments
Corporate Tax: Money collected from business, which is calculate based on their profits
Goods and Services Tax (GST): Added to the cost of purchases and good, such as clothing and fast food ect
Other Taxes: Variety of other taxes such as import duties, fuel taxes and duties on alcohol and tobacco
Transfer Payments: Part of the federal government's spending relates to transfers made to individuals, provincial/territorial governments and other groups
Transfers to Individuals: Includes elderly benefits, employment insurance benefits (for those out of work or unable to work) and children benefits
Provincial/Territorial Transfers: There are 3 main types of transfers to the provinces and territories
Canada Health Transfer: Provides long term funding for health programs and services
Canada Social Transfer: Includes funding for post-secondary education, social programs and services for services for children such as child care
Equalization Programs: Relate to payments to address economic gaps between provinces/territories
Infrastructure: Physical and organizational structures, such as buildings, roads, power supplies
Crown Corporations: Businesses owned by the government that operate independent of government, such as the CBC, Canada Post and Via Rail. They are intended to serve a particular objective or fill a need that may not be filled by a private enterprise
Equality: A strategy to achieve fairness by treating everyone the same and providing equal opportunity
Equity: A strategy to achieve fairness by recognizing differences and providing everyone what they need to be successful
Reform: Changes made to a social, political, or economic institution or practice in order to improve it
*All of this is from Handout 9.2 Key Political Terms and Concepts at the Federal Level- Student Vote Canada 2019 page 63
