Highlights from the 2023 federal budget
Healthy teeth, "clean energy" and a growing national debt – how the current government sees the budget.
Deputy Prime Minister and Minister of Finance Chrystia Freeland announced the country's federal budget for 2023-2024. The document is divided into 6 chapters dedicated to the most pressing issues that the Canadian state has to deal with. Among them are aid to Ukraine, a strong immigration system, as well as green the economy and new dental program.
Canada also highlights importance of supply chains from allies such as the U.S. and Europe. Freeland said in her speech that it would help end what Ursula von der Leyen, president of the European Commission, called "a dangerous dependence" on authoritarian economies, including China, the dominant power in the supply of batteries and electric cars, and Russia, that uses oil and gas as political tool.
Highlights of the new federal budget
- CAD 83 billion Canada will spend over the next 12 years on investment tax credits to encourage the development of clean energy, hydrogen and carbon capture and storage systems;
- CAD 13 billion to federal dental program funds;
- CAD 2.5 billion to help low-income Canadians. The government called the measure a "grocery rebate";
- CAD 40.1 billion is the projected budget deficit for the coming fiscal year;
- CAD 59.5 billion is new spending over the next five years. In the next fiscal year CAD 8.3 billion will be spent;
- CAD $15 billion in savings over five years from reduced government travel fees and additional consultant assistance, and a three percent reduction in federal agency spending;
- CAD 2.45 billion to the Ukrainian government, including proceeds from Ukraine's first-ever CAD 500 million sovereign loan, that allowed Canada providing support directly;
- CAD 1.4 billion funds allocated to the Canadian Space Agency working on the International Space Station till 2030.
- CAD 2.9 billion government plans to raise in the federal budget from the taxes of the richest Canadians over 5 years.
About CAD 814 million in 2023-2024 to increase student loans from CAD 210 to CAD 300 per week and to increase student grants by 40%.
Opinions
"There is a lot of spending," says Mostafa Askari, chief economist at the Institute of Fiscal Studies and Democracy at Ottawa. He is wary of the government being able to find $15 billion in savings, particularly given that the promises are vague, with no specific understanding of what money will not be spent.
"I'm really proud that we were able to force this government to expand dental care," NDP Leader Jagmeet Singh said after the budget was tabled. Singh said that while he is disappointed the budget lacks new measures to help make housing more affordable, his party will still vote for it. That will give the Liberals enough votes to pass the budget and continue governing.
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