Families, low-income seniors big winners in federal budget

Financial transfers from the federal government, some to the provincial government and some directly to people, are the most significant element of every federal budget for New Brunswick.

This year, total unconditional payments directly to the province from Ottawa for health care, social services and other needs are increasing 3.1 per centto $2.74 billion.

• Federal budget 2016: Liberals push deficit to spend big on families, cities
• Federal budget 2016: Highlights of Bill Morneau's first budget

The largest portion of that are equalization payments to compensate the province for its "have-not" status and they will hit a record $1.7 billion.

There is also a commitment in the budget to add $2.8 million more to the equalization pool over the next fouryears.

"Major transfers to provinces and territories will continue to grow in a sustainable manner moving forward," the budget states.

But the single biggest budget winners in the province may well be low-income single seniors. Nearly 30,000 currently receive close to $200 million per year from the federal government's Guaranteed Income Supplement.

Finance Minister Bill Morneau's budget plan to raise the supplement for those living on their own by10 per centshould bring an extra $1.5 million per month into the province for those low income seniors starting in July.

Other big winners areyoung families, especially middle and low-income ones who will be getting substantially more money in child benefits.

Enhanced Employment Insurance (EI) payments, including lowering the waiting period for receiving benefits from two weeks to one, will help tens of thousands of New Brunswick recipientsalthough the adding of fivebenefit weeks for people living in 12 areas that have recently seen the largest increase in unemployment and an extra 20 weeks for long serving employees in those areas is bypassing New Brunswick completely.

New Brunswick is also missing out on most the federal government's new $3.4 billion public transit fund which is being divided up based on a province's current public transit ridership not its population.

That lowers New Brunswick's share of the fund from what might have been a per capita amount of $70 million to $8.7 million.

The budget did have one special mention for New Brunswick, however, noting that the federal government has agreed to pay for disposal of the old Saint John to Digby ferry, the Princess of Acadia, which was replaced by the Fundy Rose last summer.