Economic conditions since Ottawa’s last budget, including a series of steps aimed at stimulating economic growth, helping workers and the unemployed, fighting pandemics, and, of course, establishing a day care network for $ 10 a day Has changed a lot.
A year later, the economy is back on track and Canada has to deal with soaring oil prices per barrel, a sharp rise in grocery baskets, inflation that hasn’t been seen for 30 years, and a deteriorating labor shortage. Not to mention the serious housing crisis and the effects of the war in Ukraine.
However, Chrystia Freeland, who stands at the table around 4 pm at the House of Commons, the first budget of Justin Trudeau’s Liberal Party administration since reelection, has less deficit than expected, so he has room to make a choice. there is.
Parliamentary Budget Officer (PBO) said in early March that higher-than-expected tax revenues are forecasting a deficit of $ 47.9 billion next year. In December, the Treasury forecasts a deficit of $ 58.4 billion in early April, which is a difference of $ 10.5 billion.
The Trudeau government may want to invest in national defense. CBC News It reports that $ 8 billion of new money will enter this niche.
It must be said that the war in Ukraine affects the inventory of Canadian troops. Canada sent weapons, ammunition, equipment, and various equipment to the Ukrainian army to fight the Russian invaders. The conflict also highlighted the potential threat of Russia in the Arctic.
In addition, Ottawa is under pressure from NATO partners to spend at least 2% of it.
Increase defense spendingMinister Anita Anand recently said.
In addition, the Prime Minister announced on March 28 that his government has begun final negotiations with American manufacturer Lockheed Martin to acquire 88 F-35 aircraft. Replacing the CF-18 40 years ago is expected to cost Ottawa nearly $ 20 billion.
An agreement between the Liberal Party of Canada (PLC) and the New Democratic Party (NDP) on March 22 to allow the Trudeau government to remain in power until 2025 could also affect budget content.
theNDP In particular, call for the launch of a universal drug insurance plan, the creation of a dental plan for low-income Canadians, the implementation of measures to make homes more affordable, and the improvement of Canadian allowances for homes. I am.
At the same time, Freeland’s budget may include a set of environmental measures aimed at combating climate change. Between 2018 and 2020, Canada provided 14.5 times more support to the fossil fuel industry than the renewable energy industry. It is the only G7 country with increasing emissions since the signing of the Paris Agreement in 2015.
Achieving the goals of the Paris Agreement requires a significant reduction in fossil fuel consumption and production, the sale of the private sector, and the termination of subsidies to this sector, emphasized by a group of intergovernmental experts on climate change. It has been. (IPCC) was published on April 4th in the latest report.
The federal government, which has just approved the Bay du Nord oil project, has abolished subsidies for fossil fuel development, imposed an additional 3% tax on oil companies’ profits, and deducted carbon capture investment tax.
Keep in mind that the state has long sought to increase health transfers. Will Ottawa hear their repeated plea this time? On the other hand, new funds are not expected to fight the coronavirus. Will the federal government give indigenous peoples special envelopes to solve problems with access to drinking water and improve services to children? And infrastructure?
Minister Chrystia Freeland should increase the budget balance from $ 145 billion (2021 to 2022) to $ 58 billion (2022 to 2023) in the latest economic information released on December 14. I said there is. It set the return to equilibrium within the range of 5 to 6 years.
Among them, growthGDP Real estate was revised slightly upward to 4.2% in 2022. GDP, This year has been revised downward to 48%. Debt should increase to 125 billion from 2022 to 2023.
Canada’s economy is doing well, despite significant increases in living costs. According to Statistics Canada, it was estimated to be up 0.8% in February and up 0.2% overall in January. The final data will be announced at the end of April.
The employment market is strong. The unemployment rate dropped from 6.5% in January to 5.5% in February, even lower than the 5.7% recorded in February 2020 before the start of the COVID-19 pandemic in Canada.
Inflation rose from 5.1% in January to 5.7% in February. As part of that, average salaries increased by only 3.1%. Food prices rose 7.4% in February, according to Statistics Canada. This is the largest annual increase since May 2009. The cost of shelters in February increased by 6.6%, the largest increase since August 1983.
Under these circumstances, the Minister of Finance can also decide to assist taxpayers by reducing the tax burden on taxpayers with reduced purchasing power.