The Canadian federal budget ’for fiscal year 1994–95 was presented by Minister of Finance Paul Martin in the House of Commons of Canada on 22 February 1994.
[2] The budget is tabled only a few months after the 1993 Canadian federal election in which the Liberal Party led by Jean Chrétien received a large majority of the seats in the House of Commons.
Paul Martin, Chrétien's main rival in the 1990 Liberal Party leadership election was appointed Minister of Finance.
On 8 February 1994 the prime minister Jean Chrétien delivered a surprise prime ministerial statement in the House of Commons to announce a federal action plan on tobacco smuggling:[3] Therefore, much as we may all regret the necessity of lowering cigarette taxes, we must do so at least until we have put the smuggling networks out of business.
Income tax measures were implemented through Bill C-59 which was read a third time and passed on 21 February 1995 in a 129–64 vote[11] and received royal assent on 26 March 1995[12] whereas changes announced in the 8 February Statement and the reduction of the GST input tax credits claimable on meal and entertainment expenses is legislated through Bill C-35 which received royal assent on 23 June 1994.