Federal budget calls for massive cuts

 The federal budget is promising to hack away at the record $53.8-billion deficit.

 The Conservative government is promising $17.6-billion in spending restraint over 5 years in areas including foreign aid and defence.

Another almost $7 billion will need to be chopped after a comprehensive review of government programs.

Finance Minister Jim Flaherty says Thursday’s budget is one of the toughest he’s ever had to compile — because he kept having to say ‘no.’

The budget also confirms the economic stimulus tap will be turned off by end of March next year.

But the government says it won’t raise taxes, and won’t make cuts in transfers to the provinces.

The deficit for the current fiscal year is projected to reach almost $54-billion, and the Harper government says it will cut that in half over the next two years.

Here are some of the other budget highlights:

-phase two of the government’s economic action plan will be implemented as promised, with $19 billion in spending over the next year.

-Ottawa is pumping an additional $4 billion dollars into the Employment Insurance system to prop up benefits and training.

-Canada’s elite summer and winter athletes get an extra $17 million a year for the next two years in the budget.

You can look over the other budget highlights here

Meantime, opposition party leaders wasted little time attacking the budget, but at the same time say they would not bring down the Harper government over it.

Both Liberal Leader Michael Ignatieff and NDP Leader Jack Layton say they won’t support the document.

But they can voice displeasure and still avoid an election by limiting the number of their MP’s who vote on the measure.

Ignatieff says Canadians have told him they don’t want another election right now.