Canada budget woos young voters, asks rich to pay more

Canada budget woos young voters, asks rich to pay more

Canada's Finance Minister Chrystia Freeland has presented a new government budget to lawmakers
Canada's Finance Minister Chrystia Freeland has presented a new government budget to lawmakers. Photo: Fabrice COFFRINI / AFP/File
Source: AFP

The government of Canadian Prime Minister Justin Trudeau on Tuesday unveiled a federal budget that seeks to woo young voters while asking the wealthy to pay higher taxes.

Trailing his main rival, conservative leader Pierre Poilievre, by more than 10 points, Trudeau must rally support from the millennials and Gen Z voters who propelled him to power in 2015 in order to win elections expected next year.

At the same time, Finance Minister Chrystia Freeland has promised not to swell the nation's budget deficit while doling out tens of billions of dollars in additional social spending to help ease concerns about rising costs of living.

Most of the new spending is directed at education, housing and jobs -- all pressure points for young voters.

"For too many younger Canadians, particularly millennials and Gen Z, it feels like their hard work isn't paying off," Freeland said in the budget document.

Read also

Canada budget forecasts 'soft landing' in 2024, avoiding recession

"They're not getting the same deal their parents and grandparents did," she said, adding: "We must restore a fair chance for millennials and Gen Z."

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

New homes, rent subsidies

Specifically, millennials and so-called Zoomers could benefit from extended student grants and loans, rent subsidies, a boost to work placement and summer jobs programs, a new youth mental health fund, and hep improving their coding skills.

The Liberal government also pledged amid a housing crunch to build an additional 3.87 million new homes by 2031 "at a pace and scale not seen since after the Second World War," Freeland said.

To do this, Ottawa will open up public lands for housing, convert federal offices to apartments, tax vacant properties and scale up modular housing.

New home prices fell slightly in March but not enough to offset a jump in mortgage interest costs that has sidelined many would-be first-time buyers.

Read also

Mideast-related oil price spike threatens 'relatively good' economic outlook: IMF chief economist

Inflation came down from a recent high to 2.9 percent in the month, but it is still too high to bring relief in interest rates set by the Bank of Canada.

Nevertheless, Canada is expecting a "soft landing" this year and will avoid a recession due to slightly improved growth despite relatively high interest rates weighing on the economy, the budget said.

Economists surveyed by the government "expect the economy to avoid a recession," it said, forecasting growth of 0.7 percent this year and 1.9 percent in 2025 -- compared to 0.5 percent and 2.2 percent forecast in a November economic statement.

To help offset the boost in social spending, the budget calls for increased capital gains taxes on the wealthiest Canadians.

"Today, it is possible for a carpenter or a nurse to pay tax at a higher marginal rate than a multi-millionaire," Freeland told lawmakers. "That isn't fair."

Read also

China posts forecast-beating growth in first quarter

Small businesses meanwhile will gain a carbon tax rebate, and funds were made available for artificial intelligence research and startups.

Ahead of an expected catastrophic summer wildfire season, Ottawa is also doubling a volunteer firefighter tax credit.

In the budget, funding was also earmarked for a national school food program, free contraceptives for women, enhancing Canada's spy agency capabilities to combat foreign interference, more foreign aid, and restoring roads to remote Indigenous communities damaged by climate change.

Freeland reported in the budget that the national debt will increase slightly to a new record high of Can$1.3 trillion in fiscal 2024-2025.

Canada's debt-to-GDP ratio is expected to fall to 41.9 percent.

The deficit, meanwhile, is expected to come in a bit lower than originally expected to Can$39.8 billion, and remain stable before starting to fall in 2026-2027.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.