For the 2024-25 financial year, the government plans to spend a whopping $535 billion to support various initiatives and programs. Breakdown of the federal budget below:
Deficit: $39.8 Billion
The projected deficit falls just short of the $40-billion mark outlined in the fall economic statement, standing at $39.8 billion.
New Spending: $11.5 Billion
An additional $11.5 billion will fuel various sectors to stimulate growth and address pressing needs.
Housing Investment: $8.5 Billion
The government allocates a substantial $8.5 billion to encourage new housing development, aiming to tackle housing challenges across the nation.
Housing Plan Impact: 3.87 Million New Homes
The government’s housing plan aims to facilitate the construction of approximately 3.87 million new homes by 2031, addressing housing shortages.
Investment in Generational Fairness: $2.6 Billion
To promote educational opportunities and job creation for younger Canadians, the government invests $2.6 billion towards initiatives fostering generational fairness.
Capital Gains Tax Revenue: $19.4 Billion
Over the next five years, Ottawa expects to generate $19.4 billion in revenue through targeted changes to capital gains taxes.
Universal Coverage Costs: $1.5 Billion
The government plans to cover the costs of contraceptives and diabetes medicine and supplies, estimating a total expenditure of $1.5 billion over the next five years.
Excise Tax Increase Revenue: $1.7 Billion
An increase in excise tax rates for tobacco products is projected to yield $1.7 billion in revenue for the government over the next five years.
Defense Budget Boost: $8.1 Billion
Canada’s defense budget will receive a significant boost of $8.1 billion over the next five years to strengthen national security and capabilities.
Defense Spending as a Percentage of GDP: 1.76%
By 2030, defense spending is expected to reach 1.76% of GDP, although still below the 2 percent NATO target.
Emphasis on Fairness: 50 Mentions
The federal budget document underscores the concept of “fairness,” appearing a noteworthy 50 times, reflecting the government’s commitment to equity and justice.
Written by Jared Gibbons – Top 1% Realtor in the Fraser Valley