'Targeted inflation relief' coming in 2023 federal budget, Freeland says
The coming 2023 federal budget will "exercise fiscal restraint" while also making "significant" investments in Canada's health-care system and building a clean economy, Deputy Prime Minister and Finance Minister Chrystia Freeland said Monday.
In a speech detailing the Liberal government's priorities ahead of next week's budget release, Freeland said the budget will include "targeted inflation relief" to help Canadians who are most acutely feeling the pinch as a result of rising prices.
This echoed Prime Minister Justin Trudeau's commitment last week that the massive fiscal document being tabled will include affordability measures meant to "directly help Canadians."
Though, with the federal government remaining mindful of the need to not pour fuel on the fire of inflation, Freeland is vowing to "exercise fiscal restraint."
"This support will be narrowly focused and fiscally responsible. The truth is, we can't fully compensate every single Canadian for all of the effects of inflation or for elevated interest rates," Freeland said. "To do so would only make inflation worse and force rates higher, for longer."
Addressing the state of the Canadian economy, the finance minister touted Canada's near-record low unemployment rate post-COVID-19 recession, but admitted that inflation is "still too high."
She said that higher interest rates are having their intended impact of slowing the economy down, however that means the federal government's revenues are lower, and no longer in a place where the massive pandemic-era support programs can be sustained.
"Our ability to spend is not infinite," Freeland said, pointing to existing supports for lower-income Canadians as an appropriate place to focus specific cost-of-living efforts.
Speaking about what she said she's heard from Canadians during her pre-budget consultations, the finance minster spoke about how, whether she was talking to someone doing well or struggling to get by they shared a common concern for their neighbours.
"What Canadians want right now is for inflation to come down and for interest rates to fall. And that is one of our primary goals in this year’s budget: not to pour fuel on the fire of inflation."
PRIORITY SPENDING ON HEALTH AND CLEAN ECONOMY
She signalled that with economic prudence in mind, the 2023 federal budget will still be prioritizing "two significant and necessary investments": health-care funding and building Canada's clean economy.
Freeland confirmed that as expected, the budget will include the one-year, $196-billion health-care funding deals recently secured with all provinces and territories, and the $2-billion one-time top-up to the Canada Health Transfer to address urgent pressures being experienced at pediatric hospitals, emergency rooms and surgical centres.
"We will ensure that Canadians can rely on a world-class, publicly-funded health-care system… And we will ensure that a strong and effective public health-care system can continue to care for and nurture a strong and healthy Canadian workforce," Freeland said. "Universal and high-quality health care is rightly a priority for every single Canadian. It is also a national competitive advantage."
As for what kinds of clean economy investments are ahead, Freeland was light on specifics in Monday's speech, but it's expected that it will include measures aimed at ensuring Canadian companies can be resilient in the face of a challenging economic landscape and competitive global markets.
A top concern in this regard is the United States' Inflation Reduction Act, which has the Americans investing heavily in clean energy and net-zero industries.
Freeland said this global pivot to clean technology, and the recently-put-into-focus need to build critical supply chains with allied democracies in light of the pandemic and Vladimir Putin's war in Ukraine, has Canada uniquely placed to benefit.
"These two fundamental shifts represent a huge economic opportunity for all of us… Because Canadian workers and Canadian businesses have the necessary expertise, and because Canada produces what the world needs," Freeland said.
She set this up as a clear choice in her mind: Canada can either capitalize on this historic opportunity, or be left behind as other countries seize the call for a clean economy.
"That's why the plan we will release next Tuesday will include a serious investment in Canadians, in good jobs, in more vibrant communities, and in a new era of economic prosperity that we will build together," Freeland said. "We will build a Canadian economy that is more sustainable, more secure, and more affordable."
Taking a shot at the Conservatives' call for the 2023 federal budget to present a plan to cut taxes and spending, Freeland called it a "reckless approach."
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Local Spotlight
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
'I'm committed': Oilers fan won't cut hair until Stanley Cup comes to Edmonton
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
'It's not my father's body!' Wrong man sent home after death on family vacation in Cuba
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
'Once is too many times': Education assistants facing rising violence in classrooms
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
What is capital gains tax? How is it going to affect the economy and the younger generations?
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly on a mission: N.S. student collecting books about women in sport for school library
Molly Knight, a Grade 4 student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.