Canada brought in its federal budget Tuesday at CAN$432 billion (US$317.5 billion) and the emphasis was on helping Canadians fight the high cost of living, including through a rebate on groceries. The budget also features a deficit projected at CAN$40.1 billion (US$29.5 billion) and will raise the total debt to CAN$1.18 trillion (US$868 billion). The budget was introduced in the House of Commons by Chrystia Freeland, the deputy prime minister and finance minister. She said her 250-page budget was continuing Canada’s ‘proud tradition of fiscal responsibility.’ The following are some of the 2023 budget highlights: – Total budget is CAN$432.6 billion (US$317.5 billion). There is CAN$70 billion (US$51.5 billion) in new spending planned between now and 2027-28, with CAN$25 billion (US$18.4 billion) in government department cuts and savings. – To help cope with the spiraling cost of living, the budget provides CAN$2.5 billion (US$1.8 billion) in a grocery rebate – paid out in the form of a tax rebate – to help low- and middle-income Canadians. The tax rebates, about CAN$450 (US$331) in a one-time payment to a family of four, are expected to provide a measure of relief to about 11 million households. – The government will pay out another CAN$46.2 billion (US$31.3 billion) in total over 10 years to the provinces to boost healthcare. – Canada is introducing a new dental plan and has targeted CAN$13 billion (US$9.5 billion) on that item. – There is also an increase in tax-free withdrawals from registered education funds and an end to ‘junk fees.’ The latter are charges like roaming fees for cell phone use and additional charges by airlines for things like baggage fees. – A tax-free home savings plan will begin in April to help Canadians purchase housing. – Clean tech manufacturing investment will qualify for a 30% tax credit up to CAN$4.5 billion (US$3.3 billion). – The government also made it a criminal offense to charge more than 35% on loans. – The economic downturn means revenue is expected to drop CAN$5.7 billion (US$4.2 billion), so there will be a series of tax increases on large corporations and what the government will define as rich families and individuals. Freeland said this was not an easy budget because it had to balance helping Canadians afford price increases without feeding inflation.
Source: Anadolu Agency