1995 FEDERAL-BUDGET - TARGETING EXPENDITURES

Finance Minister Paul Martin's second budget might be good for Canada's mining industry in the long run, but the budget raises a number of concerns for the industry in the near term. The budget papers suggest that the 25% resource allowance is not working as intended, and report that the Department of Finance will be reviewing this valuable allowance. The so-called ''large corporations tax'' rate will be increased This annual tax, which is imposed on a corporation's capital even when the corporation is not in production, is particularly harmful to the mining sector.