With the recent announcement of Budget 2024, Canadians are wondering whether or not federal spending really is "fair for every generation."
In the midst of a cost of living crisis, the thought of more taxes is highly concerning for Canadians, and liberals will have to be transparent in justifying any new spending measures introduced as the country approaches an election year.
Treasury Board President and local MP Anita Anand spoke with Oakville News about what the government believes this budget means for Oakville residents and the broader Canadian population.
Anand discussed the government's pride in initiatives aimed at supporting families, such as the Canada Child Benefit, while also introducing new measures to address pressing issues like organized crime and housing affordability.
The budget references a Tax-free First Home Savings Account, which a cited 750,000 Canadians have opened to save for their first down payment.
"What it comes down to is this: we believe in growing the economy and ensuring that people have a fair chance to succeed," said Anand.
"This Budget shows the clear difference between us and the opposition, who have voted against supports for the most vulnerable every chance they got and have spread misinformation on issues like auto theft and climate change," she continued.
"They’re not showing that they care, but we certainly are."
Budget 2024 states that new criminal offences will be introduced for "auto theft involving the use of violence or links to organized crime."
A new aggravating factor during sentencing has also been introduced if an offender engaged a minor in the commission of an offence under the Criminal Code.
Regarding concerns over the newly proposed capital gains tax of 66.7 per cent, Anand said that it would not affect 99.87 per cent of Canadians, including homeowners selling their primary residence, which remains tax-exempt.
Up to $250,000 in annual capital gains from the sale of assets like cottages, investment properties, or taxable investments such as stocks will also remain unaffected
As well, capital gains earned in savings accounts, such as an RRSP, RRIF, TFSA, FHSA, or RESP, will not be impacted.
In response to questions about the housing affordability crisis, Anand discussed several measures the government is taking.
These include establishing a new Canada Housing Infrastructure Fund, provision of grants to regional development agencies, extension of mortgage amortization to 30 years for first-time buyers, implementing reforms to the Apartment Construction Loan Program, and the inclusion of rental payment history as part of credit score qualification.
"We're also introducing a housing design catalogue to accelerate construction," said Anand.
"Additionally, we're improving housing support for students, adjusting aid to reflect housing costs, benefiting about 79,000 students annually. These initiatives will benefit millennials and Gen Z nationwide, including those in Oakville like students at Sheridan College."
A new study from BMO Canada last year found that 68 per cent of Canadians feel that buying a home is more out of reach compared to their parents - a percentage easily identified among Oakville's population.
Anand says the liberal's initiatives this year will benefit millennials and Gen Z who are among the key demographics facing significant financial challenges. Among those key challenges is food prices, which have left many Canadians with higher bills and smaller portions.
"Prices have been driven up by global factors like Russia's full-scale invasion of Ukraine, grain blockades, and climate impacts on agriculture," says the budget. "Canadian grocery companies are also making record profits. The government is fighting to stabilize the price of groceries for Canadians."
Since the pandemic, three of Canada's largest grocers have increased their profits by 46 per cent. Budget 2024 says that the government is "combatting the oligopolies," by "strengthening competition."
The budget outlines the government's proposal to allocate $62.9 million over three years, beginning in 2024-2025, to renew and expand the Local Food Infrastructure Fund, supporting community organizations, with a priority on Indigenous and Black communities, as well as "other equity-deserving groups."
Budget 2024 is certainly not without it's cuts, a particularly concerning cut for Canadians is the loss of 5,000 full-time equivalent public service positions.
Regarding the potential impacts of government efforts to reduce the civil service, which is said to be based on "historical rates of natural attrition," Anand says that the goal is not arbitrary cuts.
"During the pandemic, we needed to hire public servants to help with the government's emergency response and service delivery," she said.
"Now that we are in the post-pandemic period, an examination is being conducted in collaboration with all departments and government agencies to determine where savings can be achieved towards our targets."
Budget 2024 was presented in the House of Commons last week, on Tuesday, April 16, 2024.