April 17, 2024
Yesterday, Deputy Prime Minister and Finance Minister Chrystia Freeland tabled the federal budget in the House of Commons entitled “Fairness for Every Generation”. With the current Liberal government’s poll numbers in the low to mid 20 percent range and the opposition leader close to 40 points by talking about affordability, this budget is focused squarely on those issues, especially as it relates to the younger generation.
According to the budget plan, the federal government has hit their target on deficit spending and is on a path to reduce that overall deficit (projected at $39.8 billion) over the next 5 years based on better economic realities plus raising taxes on the “rich”, mostly through capital gains taxes. Overall, the debt-to-GDP ratio is set to decline as well, and inflation is projected to settle close to two percent by the end of the year. Most of the major initiatives contained in the Budget were already announced leading up to yesterday. Some of the big highlights of this budget are:
- $8.5 billion to build 3.9 million new homes by 2031, including:
- $15 billion top-up to the Apartment Construction Loan Program
- $6 billion for a Canada Housing Infrastructure Fund
- $1 billion in loans and $470 million in rental protection programs
- Approximately $1 billion in new homebuilding initiatives
- Allowing 30-year amortization on mortgages up from 25 years
- Promised a “Renters’ Bill of Rights”
- More publicly owned federal lands will be designated for homes
- Carbon rebate to small businesses of $2.5 billion
- Capital gains increase from one-half to two-thirds above $250,000
- $1.5 billion over 5 years to support the national pharmacare program (which was one of the big conditions of the Liberal and NDP Supply and Confidence agreement)
- $6.1 billion over 6 years for the Canada Disability Benefit
- Nearly $8 billion over several years to help address the government’s commitment to Indigenous reconciliation
- $200 million to increase venture capital for rural and remote businesses
- $3.5 billion for research and strategic investment
The Budget also includes money to help combat auto thefts that have been on a dramatic rise over the last few years, as well as additional planned spending on the military which will bring defence expenditures up to close to $50 billion per year by 2029/30.
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For more information and insights about what these developments mean for Canada’s political landscape, please contact:
Brian Gilbertson
Senior Strategy Advisor—Ottawa
brian@praireskystrategy.ca
403.471.6470
Tara Bingham
Vice President
tara@prairieskystrategy.ca
204.390.7760
To learn more about Prairie Sky Strategy, please visit our website.
