But with a little bit for everybody, observers were already saying it will be a tough document for the opposition Liberals to vote down, which would most certainly trigger an election.

For Canadians with a few dollars to sock away, the federal government is creating a registered Tax-Free Savings Account, to which individuals can contribute up to $5,000 a year starting in 2009.

Investment income, including capital gains, earned in the plan will be exempt from any tax, even when withdrawn. Any unused contribution space can be carried over to future years.

“In many ways, a Tax-Free Savings Account is like an RRSP for everything else in your life,” Finance Minister Jim Flaherty said in his budget speech.

Mary Webb, a senior economist with Scotiabank, praised the move, saying Canadian can treat it like a “rainy day” fund where the money can be withdrawn and they won’t be set upon on by the taxman.

“We want a tax system to encourage investment and saving,” Webb told the Toronto Star.

The finance minister said he took to heart a complaint from a constituent that he should not be punished for saving money. “He’s right and we’re going to change that,” Flaherty stated in the 17-page budget speech.

In the face of fears that economically-challenged Ontario would be shut out in the budget, $250 million was set aside for an Automotive Innovation Fund, designed to fuel development of “greener and more fuel-efficient” vehicles.

“It will also preserve and create high-quality jobs,” said Flaherty, whose federal riding includes Oshawa, the home of General Motors Canada Ltd.

Ontario’s automotive industry – the province’s largest private sector employer – has been hard hit by a strong Canadian dollar and offshore imports, resulting in hundreds of thousands of jobs disappearing in the past few years.

The government, effective Jan. 1. 2009, is establishing a new crown corporation, the Canada Employment Insurance Financing Board, responsible for implementing a new employment insurance premium rate-setting mechanism and maintaining a $2-billion cash reserve.

Both employers and employees have been complaining for years that premiums are too high and benefits too hard to collect, even though the fund has a surplus topping $47 billion.

“With this reform, Canadian workers and communities can be confident that EI will be managed on a truly break-even basis,” Flaherty said in his speech.

Besides the new tax-free saving accounts, the budget contains no specific tax breaks for individuals, but Flaherty has argued that paying down the debt is in itself an indirect tax break since less is being paid out in interest.

The budget surplus for fiscal year 2007-08, ending March 31, is $12.9 billion and of that $10.2 billion is being used to pay down the Canada’s $457-billion debt.

Following the lead of other countries such as Ireland, Canada is introducing higher security electronic passports in 2011, which will be valid for 10 years, up from the current five years.

The government is also making permanent the gasoline tax-sharing program, which will reach $2 billion in 2009-10, money that is shared by municipalities across the country for things like transit and other infrastructure.

Besides that there will be $500 million set aside for specific transit initiatives, including re-establishing the rail link from Peterborough to Toronto, which was killed by CN Rail years ago.

“Investing in a modern public transit is about preserving our environment. It’s about reducing traffic congestion so goods can get to market on time,” Flaherty said.

The Federation of Canadian Municipalities recently stated that cities and towns from coast to coast desperately need funding to fix up their aging infrastructure. The federation estimates it would cost well over $100 billion to simply repair things like roads and bridges, water and sewage treatment plants.

To that end, Flaherty announced that the government is “making the largest single federal investment in public infrastructure since World War II” with $33 billion promised over seven years.

The government also throws a lifeline, in the form of $300 million, to problem-plagued Atomic Energy Canada Ltd., in part to fund the development of the Advanced CANDU reactor and improve safety at the aging Chalk River research reactor.

The Chalk River reactor made headlines when it was shut down by AECL in November over safety concerns, resulting in a so-called worldwide shortage of medical isotopes, which are used in the diagnosis of cancer and heart conditions. The House of Commons ended up having to pass emergency legislation requiring the more than 50-year-old reactor to restart.

There were further complications when the Conservative government fired Linda Keen, then president of the Canadian Nuclear Safety Association when she refused to put aside the commission safety concerns and okay the start-up of the research reactor.

AECL has also been in the news for losing its foothold in the world of nuclear reactor after decade of being the big players on the world stage.

The only major project remotely connected to combating climate change is $250 million to develop “carbon capture and storage” technology in the oil and gas industry.

Under the heading of déjà vu, Flaherty again announced funding for 2,500 frontline police officers across the country. This time the federal government puts a $400-million price tag on the promise, first made by the Conservative in the 2005-06 election campaign. The project relies on cost-sharing by provinces and territories.