Federal Budget Delivered on Thursday, April 7th
The governing Liberals put their “supply and confidence” agreement with the NDP on display when they delivered their budget for the upcoming year. The headlines include:
- $56 Billion in new spending is proposed over the next six years
- The ratio of federal debt to GDP is projected to decline to 41.5% in 2026/27, down from more than 45% currently
- $5.3 Billion for national dental program for low-income Canadians, including children and seniors
- $10 Billion ear-marked to make housing more affordable with support for Canada Mortgage and Housing Corporation, affordable housing units, renovation tax credits and a tax-free first home savings account
- $7.5 Billion for climate initiatives like greener buildings and neighbourhoods, electric vehicle mandates, charging infrastructure, and credits for investments in “green technology” to reach net-zero emissions by 2050
- $6.1 Billion dedicated to increased defense spending
- $10.6 Billion to support reconciliation with Indigenous peoples and provide health, social and educational services to First Nations youth, water treatment and housing
- Corporate income tax raised from 15% to 16.5%, a surtax on banking profits over $1 Billion for the 2021 tax year, and 18% tax rate on profits over $1 Billion
- Phasing out of the small business tax rate and introduction of a dedicated trust vehicle to encourage employee ownership at small businesses
