Finance Minister Jim Flaherty unveiled his first majority budget Monday, with only two changes from the one he offered before the last election -- more money for Quebec and cuts for political parties.

The Conservative government forged ahead with the budget they ran on during the election which featured modest proposals -- specialty tax breaks, slightly more pension help for seniors and the promise to cut the deficit by 2014-15.

As expected, the new measures are a $2.2 billion payment to Quebec to fully harmonize its provincial sales tax with the GST and a pledge to do away with the $2-per-vote public subsidy for federal political parties.

The move will undercut the Conservatives' political rivals, leaving them almost completely reliant on private fundraising.

In a brief speech, Flaherty repeatedly mentioned public support for his budget.

"A month ago the people spoke," Flaherty told the House of Commons.

"Through their democratic power they clearly signalled the need for a principled, stable government at this challenging but promising moment in our nation's history."

While the Conservatives pledged to cut the deficit, experts say the first austerity budget won't be until 2012, when the government will have to make some hard choices on what to cut.

"There will be some programs that will not continue. There's no question about that," Flaherty told reporters Monday.

Flaherty said Canadians "should be aware" there are still risks in the global economy.

"I urge my G7 partners to deal . . . with the situation in Greece, for example, so it doesn't blow out of control and affect banks in other countries," he told CTV's Power Play. "What we've done in the budget is . . . take into account there are more risks out there."

Flaherty was confident the government could find savings in the future to cut into the deficit.

"To find five per cent on the operating side of the largest enterprise in the country is no big deal," he said. "It's not easy, but it's no big deal. It's not dramatic restraint."

NDP Leader Jack Layton said the budget had too many tax breaks for banks and didn't have enough on job creation, pensions and healthcare.

Layton said he didn't agree with the political party subsidy cuts "but we'll live with it."

The official Opposition leader said the budget doesn't spend enough on infrastructure, which would have spurred job creation.

"We would have liked to have seen an adjustment to the corporate tax reduction, a slowing down in the continued giveaway to the banks and oil companies and we would have taken that money and given a reduction to small businesses," Layton said.

Liberal interim leader Bob Rae called it a "groundhog budget . . . with the same spirit of compliancy" on poverty.

"It's not a document that's intended for all Canadians," he said.

The projected deficit for 2010-2011 is $36.2 billion, which is $4.3 billion better than what was forecasted in March.

But the deficit for the 2011-2012 fiscal year has nudged upwards to $32.3 billion.

Other measures in Monday's budget:

  • $400-million to extend the ecoENERGY Retrofit-Homes program for a year.
  • A Family Caregiver Tax Credit that would save $300 for people caring for sick or disabled relatives.
  • Legislation to make the $2-billion Gas Tax Fund permanent for municipalities.
  • An initiative to forgive student debt up to $40,000 for doctors and $20,000 for nurses who move to rural areas.