Canada may raise retirement age, eliminate penny

Canada needs to balance its books and is considering a host of options to accomplish the task. Faced with rising costs and an aging population, the country is considering a measure to raise the retirement age, eliminate the penny, and strengthen exports.

OTTAWA, CANADA (Catholic Online) - In the House of Commons, Finance Minister Jim Flaherty said, "Other Western countries face the risk of long-term economic decline. We have a rare opportunity to position our country for sustainable, long-term growth." 

He continued, "Canadians have every reason o be confident," as he presented the budget for "the next generation."

The plan combines cuts with the expectation that the economy will grow around 2.1 percent annually. Among the cuts is a nearly 5 percent reduction in the size of the government workforce. 
The retirement age may be raised to 67, beginning in 2023.

Other measures are proposed in the bill. The penny may finally be discontinued, with an estimated Can$11 million in annual savings. 

These savings measures are expected to reduce the national deficit to Can$21 billion from Can$24.9 billion. 

Meanwhile, the left is opposing the plan and accuses conservatives of reneging on promises made as part of the last election. 

As Canada looks to cut costs, the nation is also evaluating other measures to boost its economy. Immigration reforms are expected to attract more money and talent to the country. The government also proposed digitizing more documents to cut printing costs. The government will also streamline review processes for major industrial projects to spur development.

Another part of the measure is to develop exports to new markets. While the US is Canada's largest trading partner the recent rejection of a pipeline into the US has the government looking elsewhere to sell some of it products. 

Canada is expected to strengthen trade ties with the European Union, China, and India.
For the moment, the plan is still a proposal, but if it is accepted, it could mean a smaller deficit - and bigger changes for the growing Canadian economy. 

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