Considering the free hand afforded them by their majority in Parliament, the budget handed down by the Conservatives this week was remarkably free of surprises.
As expected, Finance Minister Jim Flaherty left provincial transfers untouched while cutting billions from federal spending and renewing his commitment to low taxes.
Most of the smaller cuts are common sense, like eliminating the penny and using technology to reduce travel and printing costs. Some savings, like the 10-per-cent chunk carved out of the CBC budget, will ruffle some feathers. Raising the age for old age security eligibility is an appropriate response to changing demographics, but a decade long lag in implementation means it's anyone's guess who'll be in power when it kicks in.
In fact, the implications of the major spending cuts won't be known for many years. A two-year cap on environmental reviews - clearly inadequate for major projects like the Northern Gateway pipeline or the Prosperity mine - is only one example of a general retreat from the government's regulatory role. Lopping nearly a quarter of a billion dollars from the Canada Revenue Agency's budget shows how serious this government is about laissez-faire economics.
This is a conservative budget, in every sense of the word. It devolves authority to the provinces and gives the private sector a freer hand in the economy. So despite not pressing on any hot-button issues in the short term, this budget does mark a significant strategic shift in the way our confederation functions.
The consequences of this sea change will be far-reaching.
