The 2024 federal budget proposes two significant policy initiatives aimed at promoting economic development and innovation. This is the first federal budget after the 2023 elections, and the finance minister is committed to driving sustainable and affordable economic growth.
Chrystia Freeland, the Canadian deputy prime minister and minister of finance, released the 2024 federal budget summary titled “A Plan to Grow Our Economy and Make Life More Affordable.” The budget focuses on various key areas such as affordable housing, climate change, economic growth and innovation, employment, public healthcare, a fair tax system, a borrowing strategy, as well as fiscal and economic projections.
Making Housing More Affordable in Canada
Canadian Finance Minister Chrystia Freeland has made affordable housing a priority in the 2024 federal budget. With a shortage of housing in the country, the government has implemented measures to limit the number of homes an individual can purchase and help first-time homebuyers. Renters and buyers have been given additional protections and rights, while efforts to reduce construction costs have been made to increase affordability.
National Housing Strategy
The Canadian government has renewed its commitment to the National Housing Strategy by creating 6,000 units worth $1.5 billion through the Rapid Housing Initiative. Additionally, low-interest loans and forgivable loans will be provided to builders who are constructing affordable rental housing units.
The Co-operative Housing Development Program
The Canadian government has allocated $500 million towards the Co-operative Housing Development Program, which aims to facilitate the construction of cooperative housing. In addition, loans totaling $1 billion will be made available to support this initiative.
Home Buyers’ Support
The Canadian government has allocated $5 million to develop a Home Buyers’ Bill of Rights to be implemented by the Canada Mortgage and Housing Corporation (CMHC). Additionally, a Home Buyers’ Savings Account has been introduced, allowing Canadians to save up to $40,000 after-tax to put towards purchasing a home.
Foreign Property Buyers
As part of the 2024 federal budget, the finance minister introduced a two-year ban on foreign individuals and commercial enterprises from buying property in Canada. The aim is to provide more opportunities for Canadians to purchase affordable homes.
Addressing Climate Change in Federal Budget
The 2024 federal budget recognizes that combating climate change and protecting our environment are both morally good for the world and beneficial for our economy. The government has promised to support a global shift to a clean economy by introducing new and innovative incentives for the development of green technology, carbon capture, storage, and usage.
Canadian Government’s Plan for Zero Emission Vehicles
The Canadian government has taken several steps to encourage the adoption of zero-emission vehicles. As part of their commitment to renewable energy projects, they have pledged to invest $1.7 billion over the next 5 years to construct and extend a national network of charging stations for electric cars, vans, motorcycles, and buses. Additionally, the government is promoting the purchase of lower-cost zero-emission vehicles to make them more accessible for Canadians. These efforts will not only reduce carbon emissions but also protect our environment by safeguarding our sea, land, and lakes.
Fostering Economic Growth and Innovation in Canada
The 2024 federal budget prioritizes economic growth and innovation as crucial components of Canada’s long-term success. It includes investments in early learning and childcare, which are expected to increase the real GDP by up to 1.2% in the coming years. Additionally, the budget allocates funds to strengthen and diversify the Canadian economy, such as the 10 billion dollars investment in Canadian businesses and employment through the growth fund.
The government has also invested 3.8 billion dollars in Canada’s first critical mineral project to create numerous quality jobs and capitalize on the growing demand for minerals. This initiative aims to boost productivity and support Canada’s economy.
Also read: Demystifying Income Taxes in Canada: A Comprehensive Guide
The Impact of Pandemic on Employment
Budget 2022 did not include any additional pandemic benefit enhancements. This is due to the anticipation of a decline in payments as the country recovers from the employment crisis that arose during the pandemic. However, the federal government has planned to implement training programs and other benefits to support employees in their job search and transition.
Improvements to Public Health Care
The public healthcare sector is set to receive $50 million throughout 2023-2024, which will be used to establish a national emergency stockpile to assist with the procurement of Personal Protective Equipment (PPE) and other essential medical supplies.
Universal Dental Care
The government has pledged to allocate 5.3 billion dollars to a universal dental care program over the next 5 years, with an additional 1.7 billion dollars to follow. The program aims to provide free dental care to children under the age of 12 and individuals with disabilities. However, the benefit is only available to families with an annual income of less than $90,000. Canadians earning under $70,000 will also be exempt from any co-payments.
Tax fairness
Budget 2022 has introduced measures to address tax evasion and international crime, including a public, searchable register of beneficial owners of corporations and trusts. CUPE has been part of a coalition advocating for crucial changes in Canada’s tax transparency rules to combat tax evasion and other criminal activities.
However, the budget did not take any action on other important tax equity proposals, such as increasing corporate tax rates or implementing a new wealth tax.
Also read: The Role of Professional Accountants in Cloud Accounting for Canadian Businesses
Enhancing Defense and Security
Budget 2023 has allocated an additional $8 billion over the next five years to increase Canadian defense spending and bring it to 1.5% of GDP. The amount also includes aid for Ukraine, as requested by NATO members.
Furthermore, to promote leadership in the Canadian Armed Forces, the budget has allotted $100 million over the next six years to modernize the military justice system and promote cultural changes. In addition, the federal budget promises $875 million over the next five years to combat cyber threats and crimes.
The Canadian public’s response to the government’s 2024 budget was mixed. Some individuals believed that the government had made significant efforts to create one of the most innovative and far-reaching budgets in the aftermath of the COVID-19 pandemic. The budget tackled a variety of important topics, including affordable housing initiatives, climate change, transportation, and more.
In this blog post, I have covered several important areas that the budget addressed, including affordable housing initiatives, environmental sustainability, healthcare, defense and security, and tax fairness.
By reading this post, I hope that you have gained insight into where the government plans to invest its resources over the next five to six years. It is important for my readers to understand the benefits they will receive from the government and the planning they need to undertake as a result.
In your opinion, do you think the 2024 federal budget summary was a transformative moment for Canadians or not?