Many Canadians had high expectations of the federal budget that Finance Minister Jim Flaherty unveiled yesterday afternoon.

And why not? Here is a budget from a government awash in cash -- a 2007 federal surplus a full $1 billion more than was forecast. But, more than that, this was a pre-election budget, designed to make voters feel good about -- or at least content with -- the current "administration" in the event the Liberals pulled the plug.

(Dion has already said he won't defeat the government over this budget, which will be a relief to the majority of Canadians who say they don't want an election -- yet.)

Flaherty and boss Stephen Harper took the "tough love" approach, with the finance minister saying a slowing economy "requires focus, prudence and discipline." That may resonate with Canadians who would rather live with a sparse budget than a recession.

The bulk of the $13-billion federal surplus -- $10.2 billion -- will go to pay down the federal debt. It's a smart move to reduce the debt while the money's available. This budget walks very close to the edge of deficit, with no built-in surplus or contingency fund.

Hamilton Mayor Fred Eisenberger got his wish for the Gas Tax Fund, which sends money to municipalities for transit and infrastructure, to be made permanent. But he was right in predicting Ottawa would ignore the cities' campaign for further help. After last year's tax cuts, there was no help available for urban centres where local taxpayers are burdened with mounting costs for infrastructure repairs, replacement and overdue maintenance. It's a disappointment but not a surprise given Flaherty's cheap shots for cities to "stop whining."

This is a clever document, nonetheless, appealing to groups the Tories need if an election does arise. There's a significant benefit for low-income seniors, who can now earn $3,500 before their Guaranteed Income Supplement is clawed back, up from the present $500.

The most populist feature is the Tax-Free Savings Account, which Canadians can use to shelter earnings on up to $5,000 a year in savings. That may prove popular with middle-income earners and families in a position to put some money away for a rainy day.

The hurting manufacturing sector gets $1.25 billion (already announced) in assistance. Flaherty threw business a life ring in October when he slashed corporate taxes; this is a smaller accompaniment, but still a good government investment in a sector upon which so many jobs depend -- particularly in Ontario.

Those outside the fold are still there. Natives get a relative pittance to improve reserve living standards; the homeless get nothing new for affordable housing; low-income parents get no new child-care spaces or tax benefits. But, what the heck, natives, homeless people and single moms aren't the Conservative demographic anyway.

And that, folks, is the bottom line of this particular budget.