The Canadian government released its federal budget for the year, titled "Budget 2023—A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future." on March 28, 2023, by the Honorable Chrystia Freeland, who is the Deputy Prime Minister and Minister of Finance. The budget was presented in the House of Commons in Ottawa, the capital city of Canada
Budget 2023 focuses on strengthening the middle class, building a healthy future, and creating a more affordable economy. Lets take a look at some of its key highlights:
- The budget includes a Grocery Rebate program to deliver targeted inflation relief for 11 million Canadians and families who need it most.
- The government takes action to crack down on hidden junk fees and predatory lending, lower credit card transaction fees for small businesses, and help Canadians keep more money in their pockets.
- To strengthen Canada’s universal public health care system, Budget 2023 delivers $198.3 billion to reduce backlogs, expand access to family health services, and introduce a new Canadian Dental Care Plan to benefit up to nine million Canadians.
- The budget makes transformative investments to build Canada’s clean economy, fight climate change, and create new opportunities for Canadian businesses and workers.
- There are significant measures that will deliver cleaner and more affordable energy, support investment in communities and the creation of good-paying jobs, and ensure that Canadian workers are able to produce and provide the goods and resources that Canadians and allies need.
- The government plans to maintain the lowest deficit and the lowest net debt-to-GDP ratio in the G7.
That must have given a brief idea of what this Budget 2023 focus’ on primarily, Now, let’s look at the A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future.” in detail:
The budget aims to build upon the country’s remarkable recovery from the COVID-19 pandemic by strengthening the middle class, improving the economy’s affordability, and ensuring a healthy future for all Canadians.
The budget includes a new Grocery Rebate, which will provide targeted inflation relief for 11 million Canadians and families who need it the most. Eligible couples with children can expect an extra $467, while single Canadians without children can receive an additional $234. Seniors, on average, will receive an extra $225. In addition to this rebate, the government is taking action to reduce hidden junk fees and predatory lending, lower credit card transaction fees for small businesses, and help Canadians keep more money in their pockets.
The government is also investing in Canada’s public healthcare system, allocating $198.3 billion to reduce backlogs, expand access to family health services, and ensure that provinces and territories can provide high-quality, timely care to all Canadians. Additionally, the budget introduces a new Canadian Dental Care Plan to benefit up to nine million Canadians and eliminate the need for individuals to choose between their health and financial stability.
Another major focus of the budget is building a clean economy and fighting climate change. The government is making transformative investments to deliver cleaner and more affordable energy, support community investment, and create new job opportunities for Canadian businesses and workers. The budget also ensures that Canadian workers can produce and provide the goods and resources needed by Canadians and our allies.
Despite these investments, the budget also maintains a responsible fiscal plan to keep Canada’s deficit and net debt-to-GDP ratio the lowest in the G7. This plan will help build a more secure, sustainable, and affordable Canada for all Canadians from coast to coast to coast.
Trudeau’s government has been facing pressure to match the incentives for clean energy investments provided by its largest trading partner, the United States. This pressure intensified after Washington passed massive uncapped incentives for such investments in the Infrastructure Investment and Jobs Act (IRA) last year. The Canadian government’s new green investment tax credits introduced in the 2023 budget are a step towards levelling the playing field with the US, but further action may be needed to remain competitive.
The budget is aimed at building a Canada that is more secure, sustainable, and affordable for all Canadians, with a responsible fiscal plan that will see the country maintain the lowest deficit and net debt-to-GDP ratio in the G7. The budget reflects the Canadian government’s commitment to building a stronger, more resilient economy and society that is prepared for the challenges of the future.
Considered a comprehensive plan that addresses several key areas to build a stronger Canada. By providing targeted relief to Canadians, investing in healthcare and dental care, and supporting the transition to a clean economy, the government is taking significant steps to create a better future for all Canadians.
