05 Mar 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