Of our NATO allies, only Luxembourg and Iceland do a worse job of funding their armed forces and the alliance has been putting pressure on Canada to increase its commitment. Other key allies, notably the United States, have also been vocal about state of its neighbour's military.

The infusion will mute critics including the opposition Tories who campaigned on a platform that would see Canada's military funding increase to 2 percent of GDP in ten years.

Also expected in the budget:

• A major bailout for the CBC which will otherwise have to layoff more staff due to the financial hit the network will take as a result of the cancellation of the NHL season.
• A $5-billion, five-year package to create a national daycare program.
• $400-million immigrant settlement and more money to help them with job training.
• $500-million in increased benefits for seniors.
• An increase in basic personal tax exemption.
• $5-billion in environmental investments to help achieve Canada's Kyoto target.
• A $300-million "downpayment" on the government's $5-billion commitment to transfer gas tax revenue to municipalities.

Notably missing from the budget leaks is anything new on health care. So, expect the budget surprise to come on this file.