Federal budget highlights

Here are some of the highlights of the federal budget, being delivered now by Finance Minister Ralph Goodale:

The military will receive $13 billion in new cash including $7 billion in newly announced funding;

Ottawa will increase the basic personal exemption, which will lead to $7 billion in personal tax cuts, or about a $400-a-year saving for a typical middle-class family by the end of 2010;

Cities will receive $5 billion in gas tax revenues;

Child care will receive a $5 billion boost;

Foreign aid will be upped by $3.4 billion.

Environmental initiatives totalling $5 billion have been announced, from reducing greenhouse gas emissions to home retrofits, wind power and protecting lakes and parks, including $3 billion in newly announced cash.

Small boosts to the low-income seniors benefit, corporate tax cuts, increases in RRSP contribution limits, money to help immigrants settle and reducing the air travellers charge are also part of Goodale's budget.

Goodale has also promised to gradually eliminate the 10 per cent luxury tax on jewellery.

The spending commitments total almost $42 billion in new cash over five years, or $76 billion if other spending promises on health care and equalization made since last March factored in.