It was the first budget issued by Finance Minister John Manley who was given the job in May 2002 replacing Paul Martin.

In the previous fiscal year the Canadian economy had done well, despite the recent recession in the United States.

The bill was largely seen as a departure from the fiscal austerity of the last several years.

The budget had only limited tax cuts, mostly directed at corporations.

The budget set forth a plan of gradual reductions that would see corporate taxes fall well below American levels.