Chrystia Freeland outlined Canada’s annual budget for 2023, showing how the Liberals have planned to spend $ 70 billion till 2027-28. This comes with $ 59.5 billion rolling out over the approaching 5 years.
The Canada budget showed that the federal deficit is projected to be about $ 43 billion this fiscal year.
The deficit will gradually decline over the approaching 5 years but still be at $ 14 billion in 2027-28.
Key points of Canada Budget 2023
- The federal debt hits $ 1.18 trillion.
- Creation of a new agency to combat foreign interference.
- $ 4 billion over seven years for an Indigenous housing strategy.
- $ 13 billion over 5 years to implement a dental care plan for families earning less than ninety thousand dollars.
- There are three major priorities- affordability, health care or the dental sector, and a clean economy.
- $ 43 billion in net new spending over six years.
- Doubling of GST rebate is to be extended for lower-income Canadians. This shall be up to $ 467 for a family.
- $ 20 billion over six years for tax credits to promote investment in green technologies.
- The deficit for 2022-23 is expected to be $ 43 billion.
- Higher than-expected deficits are projected for the approaching five years.
Affordability, Health measures, and Travel
The federal government is to introduce a 1-time grocery rebate that shall cost $ 2.5 billion to help 11 million low and modest-income groups.
The Canada budget 2023 includes the government’s commitment to spend $ 46.2 billion more than earlier for health care.
The budget includes $ 13 billion over 5 years and $ 4.4 billion for the “Canadian Dental Care Plan”.
The government plans to spend $ 250 million over three years setting up an “Oral Health Access Fund” for those living in remote and rural communities.
They will also spend $ 45.9 million over 4 years to expand the maximum loan forgiveness on Canada Student Loans for nurses and doctors working in underserved rural and remote communities.
In the budget, the Liberals emphasize strengthening airline compensation obligations and providing the CATSA, or the Canadian Air Transport Security Authority, $ 1.8 billion over 5 years.
In this budget, there are new housing measures, allocating $ 4 billion more for the Canada Mortgage and Housing Corporation.
Different Tax and Policy Alterations
In context to small businesses, this budget said that the federal government secured deals with Visa and MasterCard. This is to lower credit card transaction fees, resulting in more than 90 percent of businesses that accept credit cards seeing their interchange fees reduced up to 27 percent.
Policy changes are also aimed at students, like raising the interest-free Canada Student Loan limit from $ 210 to $ 300 per week of study.
Business Incentives and a Clean Economy
The budget highlighted Canada’s clean energy sectors via low-cost strategic financing, investment tax credits, and targeted programs. This is to spur growth in minerals and other key sectors, for example, electric vehicles.
At least $ 20 billion to support clean growth infrastructure projects and building major clean electricity.
Overall, the Canada budget for 2023 shows the expected spending of dollars 80 billion over the approaching decade on a clean economy.
For the Protection of Diaspora Communities and Athletes
The government is planning to spend about 48.9 million on protecting diaspora communities.
The budget promises 13.8 million for the Department of Canadian Heritage. This is to ensure Canadian sporting institutions’ accountability for athletes’ treatment.
The budget goes after wealthier taxpayers that will generate $ 3 billion in revenues in 5 years.
The country’s economy is slowing, thus resulting in less GDP rise, but the government is projecting a strong labor market.
Canada’s debt as a percent of the GDP is projected at 42.4 in 2022-23, hovering around 43 percent over the approaching two fiscal years before declining.
Canada’s overall debt can rise to 1.31 trillion over the approaching 5 years, and with continued high-interest rates, the federal government may pay 43.9 billion next year servicing the country’s debt.