The federal budget tabled by Finance Minister Jim Flaherty showcased $85 billion deficit. The expenditure includes $40 billion as economic boost measures for the next two years in the form of infrastructure spending and tax cuts.

According to the new budget, a single person earning $40,000 a year will save $ 115 per year. A family of four with a single earning member would earn $60,000 and save $275 a year. A single parent of a single child would be able to earn $30,000 and save $297 per year whereas a senior couple on one $40,000 per year pension would save $366 a year.

Other important highlights of the federal budget:

• Personal taxes down $20 billion over six years
• Business taxes cut by $2 billion over six years
• $12 billion set aside for infrastructure spending on roads, sewers and universities. $1 billion for "green" infrastructure, and $1 billion for clean-energy research.
• $1.5 billion for job training programs
• $7.8 billion to be spent on social housing and home renovation.
• $2.7 billion in short-term loans to the auto industry.

But Flaherty said, "The U. S. economy has not hit bottom, some of the European banks are still not okay, there is still some banking turbulence in the United States so I am being very cautious and we have to be ready for a difficult year."