Finance Minister Chrystia Freeland is poised to unveil the federal budget today, following a nationwide tour that hinted at several measures addressing housing and affordability issues.
Here's what the federal Liberals have already committed to:
Housing Initiatives:
Prime Minister Justin Trudeau recently outlined the government's strategy to confront the housing crisis. The plan aims to construct nearly 3.9 million homes by 2031. This initiative builds upon previous announcements, spanning several weeks and months, vowing substantial investments in low-cost loans, infrastructure, and support for homelessness.
Specifically, the government plans to:
Increase the capital cost allowance rate for apartments from four to 10 per cent, enabling builders to claim higher tax deductions.
Extend the mortgage amortization period to 30 years for first-time buyers of new properties.
Make additional public lands available for housing development, opting for leasing arrangements with developers instead of outright sales.
National Defence:
The Liberal administration intends to elevate military expenditure to 1.76 per cent of GDP by 2030. This includes earmarking an additional $8.1 billion over the next five years and committing a total of $73 billion by 2044.
Artificial Intelligence (AI) Investment:
Approximately $2.4 billion will be allocated in the upcoming budget to bolster AI capabilities. The lion's share of this funding, $2 billion, will be channeled into a fund aimed at enhancing access to computing resources and technical infrastructure.
School Nutrition Program:
A proposed allocation of $1 billion over five years seeks to establish a nationwide school food initiative. The goal is to provide meals to an additional 400,000 children across the country.
Youth Mental Health Support:
The government has pledged to establish a $500-million fund to bolster mental health services for young people through community health organizations. This commitment aligns with a similar promise made during the 2021 election campaign, targeting mental health support for post-secondary students.
Childcare Expansion:
In a bid to enhance childcare accessibility nationwide, the government plans to offer over $1 billion in low-cost loans, grants, and student loan forgiveness.
Tax Incentives for First Responders:
The federal budget will propose doubling the Volunteer Firefighters Tax Credit and Search and Rescue Volunteers Credit. This adjustment would increase the tax credit from $3,000 to $6,000, potentially saving volunteer firefighters up to $900 annually.
As Canadians await the unveiling of the federal budget, these outlined commitments provide insight into the government's priorities and anticipated initiatives to address pressing socio-economic challenges.
