This afternoon, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, presented the 2023 budget in the House of Commons. The budget, named A Made-In-Canada Plan, prioritizes spending on health care and has a renewed focus on sustainability measures, including new green incentives.
The government predicts a deficit of $43 billion in 2022-23 and $40.1 billion in 2023-24. The deficit is projected to decrease to $14 billion by 2027-28. The government now predicts balancing the books after the 2027-2028 year.
This $491 billion budget is increasing spending by $60 billion over the next five years, with dental care costing more than $13 billion and clean and renewable energy costing $80 billion in the next twelve years.
The government is practicing fiscal constraints by projecting $15 billion in cuts and savings over the next five years including cutting spending of across-the-board federal departments by 3%.
This budget balances the benefits of existing supports and introduces new ones to prioritize new inflation relief, health and dental care, and fighting climate change.
The Federal Government plans to help Canadians through the following commitments:
Its first-ever Grocery Rebate to support over 11 million low-income Canadians by helping eligible couples with two children with a rebate of up to $467, seniors with a rebate of up to $225 and single individuals with a rebate of up to $234
Aiming to lower credit card transaction fees for small businesses while protecting rewards earned from programs offered by banks
Offering automatic tax filing for easier access to filing tax returns
Increasing the Canada Student Grants and raising the interest-free Canada Student Loans limit for post-secondary students
Launching the new Tax-Free First Home Savings Account to help Canadians save on purchasing their first home starting April, to help save up to $40,000 with tax-free contributions
Targeting slashing fees that include higher telecom roaming charges, event and concert fees, unnecessary baggage fees, and unfair shipping fees
Proposing amendments to the Criminal Code to reduce the amount of interest allowed for payday loans
Budget 2023 is investing over $80 billion in the next twelve years in the following investments and measures:
$500 million over ten years to the Strategic Innovation Fund to support the development and application of clean technologies in Canada
Expanding eligibility for the Clean Technology Investment Tax Credit
Enhancing the Investment Tax Credit for Carbon Capture, Utilization, and Storage
$3 billion over thirteen years to Natural Resources Canada to recapitalize funding for the Smart Renewables and Electrification Pathways Program, renew the Smart Grid Program, and create new investments in science-based activities to help capitalize on Canada’s offshore wind potential
$10.6 million for Natural Resources Canada’s Centre of Excellence on Critical Minerals to provide direct assistance to critical mineral developers in navigating regulatory processes and government support measures
Enabling the Public Sector Pension Investment Board (PSP Investments) to manage the assets of the Canada Growth Fund, to allow it to begin making investments quickly to deliver on the Growth Fund’s mandate
$6.3 billion over four years starting the next fiscal year for the Clean Electricity Investment Tax Credit and an additional $19.4 billion from 2028-29 to 2034-35
$165.4 million over seven years to Transport Canada to establish a Green Shipping Corridor Program to reduce the impact of marine shipping on surrounding communities and ecosystems
Extending the reduced tax rates for zero-emission technology manufacturers
Budget 2023 also outlines the details of the Clean Hydrogen Investment Tax Credit which was announced in the Fall Economic Statement.
Budget 2023 will deliver $198.3 billion to reduce backlogs and expand access to family health services to strengthen Canada’s public health care system.
$46.2 billion to provinces and territories through new Canada Health Transfer measures
$2 billion over ten years to the Indigenous Health Equity Fund for Indigenous health supports
$36 million over three years starting next fiscal to renew the Sexual and Reproductive Health Fund, to help make sexual and reproductive health care services more accessible
Providing $359.2 million over the next five years to support the Canadian Drugs and Substances Strategy, including funding for community supports, prevention programs, supervised consumption sites, and tackling drug trafficking
$158.4 million over the next three years to implement the 988 Suicide Prevention Line for Canadians to access suicide prevention and mental health crisis support
$505 million over five years, starting in 2023-24, to the Canadian Institute for Health Information, Canada Health Infoway, and other federal data partners, to support the creation of a Centre of Excellence on health worker data and advance digital health tools
$50 million over five years, starting in 2023-24, to Employment and Social Development Canada to develop and test innovative solutions to strengthen the retirement savings of personal support workers without workplace retirement security coverage
The government is also investing in personal support worker wage support, and a Territorial Health Investment Fund
The government’s Biomanufacturing and Life Sciences Strategywill include consultations with experts to explore ways to be more efficient and effective in the development and production of vaccines, therapies, and diagnostic tools for future health emergencies
The budget will invest $13 billion over five years, up from the $6 billion previously budgeted, and $4.4 billion ongoing to Health Canada to implement the new Canadian Dental Care Plan.
Providing dental care for uninsured Canadians with a family income of less than $90,000 annually, with no co-pays for those with family incomes under $70,000
$250 million over three years starting next fiscal year and $75 million ongoing to Health Canada to establish an Oral Health Access Fund, to target gaps in access to oral health within vulnerable populations and remote communities
Budget 2023 plans to:
Invest an additional $625 million in 2023-24 in the Labour Market Transfer Agreements to ensure Canadians continue to have access to the supports they need to get their next job
Extend support for seasonal Employment Insurance claimants until October 2024
Provide $5.4 million over the next three years to Employment and Social Development Canada to ensure that the Work-Sharing Program continues to provide timely support to Canadian workers and businesses
New investments to ensure that Canada’s transportation and supply chain systems are resilient and reliable include:
$27.2 million over five years to Transport Canada to establish a Transportation Supply Chain Office to work with industry and other orders of government to respond to disruptions
$25 million over five years to Transport Canada to work with Statistics Canada to develop transportation supply chain data
New commitments include:
$19.4 million over five years to Crown-Indigenous Relations and Northern Affairs Canada for the Northern Participant Funding Program to increase the participation of Indigenous Peoples in environmental and regulatory assessments of major projects
$1.6 million over two years to the Canadian Northern Economic Development Agency for the Northern Projects Management Office to increase capacity for federal participation in environmental assessments and consultation with Indigenous communities on major projects in the territories
$5 million to Indigenous Services Canada to support the co-development of an Economic Reconciliation Framework with Indigenous partners
Supporting Indigenous participation in economic projects by providing $8.7 million to Natural Resources Canada to support deeper engagements with Indigenous partners, and loans to Indigenous communities from the Canada Infrastructure Bank
$20 million over four years to support Indigenous-led projects for safer communities through the Pathways to Safe Indigenous Communities Initiative
$95.8 million over five years and $20.4 million ongoing to help Indigenous families access information about their missing and murdered loved ones
The Alternative Minimum Tax (AMT) plans to ensure that the highest-income Canadians cannot disproportionately lower their tax bill and raise the rate from 15% to 20.5% to generate $3 billion over five years
The Registered Education Savings Plan (RESP) plans to increase limits on withdrawals from $5,000 to $8,000 for full-time students, and from $2,500 to $4,000 for part-time students as well as allow divorced or separated parents to open a joint account for their children
a $108 million investment to Regional Development Agencies to support the growth of Canada’s Tourism by supporting communities and small businesses in developing projects and events
Implementing a 2% cap on excise duty increases on alcoholic products
An additional loan of $2.4 billion to Ukraine supports
Providing access for federal government employees to a new leave to recover from a pregnancy loss as well as eligibility for leave related to death or disappearance of a child
Prohibiting cosmetic testing on animals
Protecting passenger rights ensure passengers are fairly compensated for delays and cancellations and holding airlines accountable
Watch Finance Minister Chrystia Freeland deliver Federal Budget 2023
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