On March 28, 2023, the Canadian federal government released its annual budget for the fiscal year 2023-2024. The budget, entitled “Building Back Better: Investing in People and the Planet,” focuses on rebuilding the Canadian economy and investing in social and environmental initiatives. In this article, we will discuss some of the key highlights of Canada’s 2023 federal budget.
Economic Recovery
The Canadian government plans to spend $101.4 billion over the next five years on economic recovery measures. This includes investments in infrastructure, job creation, and small business support. The budget aims to create over 700,000 new jobs in the next two years, with a particular focus on supporting women, Indigenous people, and racialized Canadians.
Infrastructure Investments
The federal government plans to invest $46 billion in infrastructure over the next five years. This includes investments in public transit, clean energy, and affordable housing. The budget also includes $4.4 billion to support the development of rural and remote communities.
Social Programs
The budget includes significant investments in social programs, including healthcare, education, and affordable housing. The federal government plans to spend $25.2 billion over the next five years on healthcare, including mental health and addiction services. The budget also includes $11.8 billion for education, including investments in early childhood education and post-secondary education.
Environment and Climate Change
The federal government has made a commitment to achieving net-zero emissions by 2050. To achieve this goal, the budget includes $12.6 billion over the next five years for climate action initiatives. This includes investments in clean energy, green transportation, and building retrofits. The budget also includes $4.8 billion for nature conservation and biodiversity protection.
Taxation
The budget includes several changes to the tax system, including a new tax on luxury goods and a tax on digital services. The luxury tax will be a 10% tax on the purchase of luxury goods valued at over $100,000. The digital services tax will be a 3% tax on revenues generated by large digital companies operating in Canada.
Childcare
One of the most significant investments in the budget is the $30 billion over five years for a national childcare program. The program aims to reduce the cost of childcare for Canadian families and create 250,000 new childcare spaces across the country. The federal government will work with the provinces and territories to implement the program.
Overall
The 2023 federal budget is a significant investment in rebuilding the Canadian economy and investing in social and environmental initiatives. The budget includes investments in infrastructure, job creation, and small business support. It also includes significant investments in social programs, such as healthcare and education, as well as a commitment to achieving net-zero emissions by 2050. The budget includes changes to the tax system, including a new tax on luxury goods and a tax on digital services. The most significant investment in the budget is the $30 billion over five years for a national childcare program, which aims to reduce the cost of childcare for Canadian families and create new childcare spaces across the country. Overall, the budget is a comprehensive plan to build back better and invest in people and the planet.