The November 16 federal budget moderate stimulus for mining

CIM Bulletin, Vol. 72, No. 801, 1979

R. D. BROWN, F.C.A., Price Waterhouse & Co., Toronto, Ontario

On November 16, 1978, Finance Minister Chretien delivered his second formal budget in the House of Commons. Over-all, the provisions of the budget should provide moderate stimulus to the Canadian economy. With respect to the mining industry, the budget offers some welcome changes in the form of: improved write-offs for development expenses and social assets; higher investment tax credits; and a reduction in federal sales tax. On the other hand, income bond financing of new mineral ventures may be restricted.