(Ottawa) Finance Minister Chrystia Freeland will present the federal budget in the House of Commons on Tuesday afternoon, revealing how the government intends to regain the support of Canadians unhappy and worried about the cost of living.
The Liberal government has already unveiled important elements of the budget in recent weeks, during a pre-budget tour aimed at drawing attention to its program.
Prime Minister Justin Trudeau promised the budget would dedicate billions of dollars to building more housing, expanding the child care network, strengthening the military and increasing the country’s health capacity. of artificial intelligence.
The government’s new housing measures are summarized in a 28-page document released Friday, which Trudeau called “the most comprehensive and ambitious housing plan ever seen in Canada.”
The Prime Minister has promised to build nearly 3.9 million homes by 2031.
Much of the budget will aim to provide hope to young Canadians who have come of age during tumultuous economic times, Mr. Trudeau said Monday, and who “now feel like the stability of the middle class is out of reach.”
However, on Tuesday the focus is likely to be on the government’s fiscal outlook and its plan to make up the difference between new spending and its pledge to keep the deficit under control.
No tax hike for the middle class
Liberals, who have been heavily criticized by fiscal conservatives for their spending record, are currently under particular pressure to rein in spending.
With inflation still above the Bank of Canada’s target, government spending could keep price growth high and delay the time when the central bank can begin cutting interest rates.
To allay these concerns, Mme Freeland promised that the federal budget would respect new fiscal safeguards presented last fall, including that the federal deficit will not increase beyond $40 billion for the 2023-24 fiscal year.
In its economic update last fall, the government also set the objective of keeping the deficit below 1% of GDP from 2026-27 and reducing the debt/GDP ratio in 2024-25 by compared to forecasts.
The Liberal government will likely benefit from stronger economic growth than expected, giving it additional room to maneuver in the budget.
However, new taxes could make up the difference.
Both the Prime Minister and the Finance Minister have ruled out raising taxes on the middle class to fund new spending, but Mme Freeland would not say whether businesses or wealthier Canadians could see their taxes increase.
Mme Freeland is expected to present the federal budget around 4 p.m. in the House of Commons.
reference: www.lapresse.ca