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Canadian Federal Budget Overview

Canadian Federal Budget Overview

 

Quick Facts:

- In the first budget proposed in 2016, the word “gender” appeared twice. In 2018, it was used 358 times.

 

Deficits:

- For the foreseeable future, the federal government will be running a deficit

- The closest projection to a balanced budget will occur in 2022 (12.3 billion deficit)

- This comes at a point in time where Canada led the Group of 7 in growth in 2017. The economy is a growth stage and unemployment is at records low’s.

 

Housing Reforms:

- Increase the amount of loans provided by the Rental Construction Financing Initiative from $2.5 billion to $3.75 billion over the next three years.

- This measure is expected to spur construction of 14,000 new rental units across Canada.

 

Small Business Tax Reform:

- Companies exceeding $150,000 in passive income will no longer be eligible for the small business tax rate. Those with passive income < $50,000 will not be affected.

 

Gender Equality:

- Pay-equity legislation for employees in the federal government and federal-regulated sectors.

- 1.2 billion over five years to create incentive for new fathers to take parental leave

 

Indigenous Issues:

- 447 million over five and 1.4 billion over six years for Indigenous Family Services and training. Indigenous children < 14 years old comprise of 7.7% of children in Canada but account for > 50% of children in foster care.

 

Tax Credit:

- Increased credit for low income workers

 

Talks of a National Pharma-Care Program:

- Can represent savings in the long term as governments would have stronger positions in negotiating prices with big pharma companies  

 

Research and Innovation:

- 3.8 billion over five years (specifically aimed at physical and life sciences)

 

Cybersecurity:

- 508 million for increased measures of cyber security

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