Finance Minister Chrystia Freeland in 2021. Image: CPAC video capture
The federal government anticipates a mild recession in early 2023, according to the fall economic statement Deputy Prime Minister Chrystia Freeland delivered in the House of Commons on November 3.
Meanwhile, the federal deficit was reduced from the anticipated $52.8 billion to $36.4 billion. That cuts it to 1.2 percent of GDP, Freeland said. Public debt charges are anticipated to increase to $34.7 billion.
The federal government also provided money for green energy, imposed taxes for corporate stock buybacks, and eliminated interest on the federal portion of Canada Student Loans.
Initiatives for the most vulnerable
The government is aiming to rein in spending. Tax revenues went up as inflation profits and salaries rose with inflation, but Freeland acknowledged the inflation windfall would not be long-lasting. Instead, the focus of spending programs was aimed at the most vulnerable.
“The Canada workers benefit will now support 4.2 million Canadians,” Freeland said. She added that the program will now be delivered quarterly.
The government will also double the GST credit for the next six months. Those GST checks will soon arrive in mailboxes for the 11 million most in-need Canadians.
Stock buyback tax
A two percent tax on stock buybacks will also be imposed on public corporations. The move comes as Canada tries to encourage companies to reinvest in domestic operations and workers.
Green energy
Details were provided about the Canada Growth Fund, an initiative proposed in the 2022 budget meant to bring in new private investment to help reduce emissions and create new jobs. The fund will be launched by the end of the year.
Alex Graham is a Reporter for Huddle Today, a content-sharing partner of Acadia Broadcasting
