2024 Federal Budget Hub
What you need to know.
Message from our Chair
Who cares? It is not an unreasonable question to ask about the relevance of Budget 2024. With so many of the measures already announced and its rollout effectively being run as a series of Liberal campaign promises, a little skepticism is in order. But, regardless of the Trudeau government’s weak public opinion numbers, there are measures in the budget and things not done that will impact your reality.
Here is how. Barring exceptional circumstances and an unlikely NDP retreat from their supply and confidence agreement with the Liberals, the budget will pass and many of the initiatives announced will take hold. Read the fine print, of course, to see when, and for how much. But with no election expected until mid 2025 or later, this budget (designed to win back Liberal support) will have a pronounced policy footprint. It will impact you. The question is, do Canadians have sufficient confidence left in this government’s ability to deliver for it to improve their polling numbers.
Budget Framing
When Finance Minister Chrystia Freeland delivered her fourth budget today, the document held fewer surprises than usual.
A decision this year to turn the budget communications protocol upside down meant the primary themes of the budget were well-understood before today – housing, affordability, new economic growth, and fiscal responsibility.
There’s one measure that the Liberals saved in the hopes that it would top the headlines on Budget Day: an increase in the inclusion rate on capital gains above a $250,000 threshold. Combined with the ample media attention they’ve won in recent weeks for their new housing policy measures, the Trudeau team is hoping to turn the tide on their anemic polling numbers.
Ascendant Conservative leader Pierre Poilievre, who has settled into a comfortable lead in public opinion polls, wasted no time pouncing on the massive new spending, framing it as more of the same from a tired and out-of-touch government.
The takeaway for those who need things from this government is clear: the next election campaign is now underway. Consider the Liberals’ budget, and the Opposition Conservatives’ response to it, a preview of the priorities and contrast we’ll see on the campaign trail. To make your voice heard, it’s never been more important to present your issues through the frame of core ballot-box priorities. We can help with that.
By the Numbers
Net new spending
$39.2B
Projected deficit
$39.8B
Real GDP growth projection
0.7%
Debt-to-gdp ratio
41.9%
Insights
Housing is the hottest ticket and biggest expense item in this year’s federal budget. The federal housing plan is the main highlight of the Liberal government’s latest efforts to address the affordability crisis being faced by many Canadians. In particular, Millennials and Gen Z who may be struggling to pay rent, let alone purchase a home. The budget commits to narrowing the housing gap by building nearly four million homes by 2031 with the support of major tax incentives for home building.
The prime minister’s bold parlay into provincial jurisdiction was amplified in Budget 2024, which placed significant emphasis on policies outside the federal government’s purview. Despite resistance from premiers, especially on the carbon tax, Trudeau continues to stand firm, challenging provinces to come up with an effective alternative. Trudeau has now upped the ante with major dollars for housing, infrastructure, and a new national school food program. The Liberals are daring provinces to say “no” to considerable federal cash on the table. The question is: can federal money reconcile the issues between the prime minister and the premiers?
With over $39B in spending announced pre-budget ($17B loan-based and $21B hitting the bottom line), all eyes were on the Liberals’ plan to pay for their new programs. The government used media leaks yesterday to flag that any new tax measures would fall on the wealthiest Canadians and corporations. This drew the ire of many economic observers who warned that it would stifle growth, business investment, and harm Canada’s competitiveness. Increases to the capital gains tax and modernizing the Alternative Minimum Tax are just some of the measures to increase revenue for new programs. Liberal strategists likely saw this as an opportunity for budget day coverage to focus on populist tax increases that may be less likely to face backlash from voters. While this approach might serve as a typical political wedge with the opposition Conservatives, don’t expect Poilievre to deviate from branding the government as tax-and-spend Liberals.
Trudeau had a tightrope to walk when it came to defence spending in this year’s budget. A rise in geo-political tensions, as well as the threat of a more isolationist U.S., has Canada’s NATO allies calling for increased defence spending. At the same time, the government has an overwhelming number of domestic issues that require significant capital. Budget 2024 has attempted to shoot straight down the middle, with the government proposing modest short term defence spending increases that still leaves Canada shy of NATO’s target of two percent of GDP.
Consultations with researchers and the tech industry on the new AI Compute Access Fund will determine how the $2B in AI computing infrastructure will be used. AI academics had asked for a $1B investment in public supercomputers to keep pace with other countries and private investment in this space. The consultation may serve as an opportunity for industry to address thorny issues with the government around the Digital Charter and the Artificial Intelligence Data Act (AIDA), which have been debated in the House since the Fall.
The Liberals are trying to win back Millennials and Generation Z with Budget 2024, employing the frame of fairness for every generation in pre-budget announcements. According to the latest Abacus poll, the Conservatives are now leading by 19 points among 18 to 29 year olds, and by 20 points among Millennials. Those numbers are a far cry from the wave of youth support that helped bring the Trudeau Liberals to power in 2015. Budget 2024 measures to support renters, make home-ownership more attainable, and investments in a more innovative, tech-driven economy are all designed to appeal to these voters. Expect the NDP, who also have their sights set on courting back the youth vote, to claim credit for many of these initiatives and trumpet recent wins including the establishment of a national school food program and steps towards national pharmacare.
Highlights
- $15B in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program
- $6B over ten years to Infrastructure Canada to launch the Canada Housing Infrastructure Fund
- $1.1B over three years to Immigration, Refugees and Citizenship Canada to extend the Interim Housing Assistance Program
- $1.1B over five years for a temporary accelerated capital cost allowance for eligible new purpose-built rental projects
- $1B over four years to stabilize funding under Reaching Home: Canada’s Homelessness Strategy
- $1.1B over ten years to Public Services and Procurement Canada to reduce its office portfolio by 50 per cent
- $5M over three years to support an overhaul of the Canada Lands Company to expand its activities to build more homes on public lands
- $500M over five years, on a cash basis, to Public Services and Procurement Canada to launch a new Public Lands Acquisition Fund
- $112.6M over five years, and $4.3M ongoing, for the Canada Mortgage and Housing Corporation to top up the Federal Lands Initiative
- $20M over five years for Public Services and Procurement Canada to scale-up its centre of expertise on public lands
- $4M over two years for Canada Lands Company to support new modular housing projects on four sites
- $15M over five years to deliver the new Public Land Bank and geo-spatial mapping tool
- $1.8M over two years for the Privy Council Office to create a Public Lands Action Council Secretariat
- $400M over four years to the Canada Housing and Mortgage Corporation to top up the Housing Accelerator Fund
- $50M over two years for Next Generation Manufacturing Canada to launch a Homebuilding Technology and Innovation Fund
- $50M over two years through Canada’s Regional Development Agencies to support local innovative housing solutions
- $20M over four years to modernize and enhance the collection and dissemination of housing data
- $409.6M over four years, starting in 2025-26, to launch a new Canada Secondary Suite Loan Program
- $19M over five years, and $5M ongoing, to relax the eligibility conditions for the removal of GST on new student residences for not-for-profit universities, public colleges, and school authorities
- $90M over two years for the Apprenticeship Service
- $10M over two years for the Skilled Trades Awareness and Readiness Program
- $50M over two years to Employment and Social Development Canada for the Foreign Credential Recognition Program
- Call on banks, fintechs and credit bureaus to prioritize launching tools to allow renters to opt-in to reporting their rent payment history to credit bureaus
- $15M over five years for a new Tenant Protection Fund
- Establish a new Canadian Renters’ Bill of Rights
- Establish a 30-year mortgage amortizations for first-time home buyers purchasing newly constructed homes
- Amend the Income Tax Act to increase the Home Buyers’ Plan withdrawal limit from $35,000 to $60,000 and to extend the grace period temporarily
- $73.1M over five years, and $14.7M per year ongoing, to the Canada Revenue Agency to continue addressing tax non-compliance in real estate transactions
- Establish a subsidiary of the Canada Mortgage and Housing Corporation to deliver flood reinsurance
- $15M to advance implementation of a national flood insurance program by 2025
- Restrict the purchase and acquisition of existing single-family homes by very large, corporate investors
- $976M over five years, and $24M ongoing, to the Canada Mortgage and Housing Corporation to launch a new Rapid Housing stream under the Affordable Housing Fund
- $477.2M over five years, and $147.8M ongoing to launch a new $1.5B Canada Rental Protection Fund
- $800M over five years, starting in 2025-26, to launch a new Canada Greener Homes Affordability Program
- $73.5M over five years to renew and modernize existing energy efficiency programs
- $30M over five years to continue developing a national approach to home energy labelling
- $250M over two years to address the urgent issue of encampments and unsheltered homelessness
- $1B over five years to create the National School Food Program
- $77.1M over four years, starting in 2025-26, to more effectively integrate internationally educated health care professionals
- $1.5B over five years to Health Canada to support the launch of the National Pharmacare Plan
- $6.1B over six years, and $1.4B per year ongoing, for a new Canada Disability Benefit
- $243M over six years, and $41M per year ongoing, to cover the cost of the medical forms required to apply for the Disability Tax Credit
- $5M over five years, and $1M per year ongoing, to amend the Income Tax Act to make additional expenses eligible for the Disability Supports Deduction
- $179.4M over five years, with $5.7M in future years, to the Canada Mortgage and Housing Corporation to launch the Child Care Expansion Loan Program
- Reallocate up to $41.5M over four years, starting in 2025-26, and up to $15M ongoing, to help providers apply for funding through the Child Care Expansion Loan Program, and to support Early Learning and Child Care research initiatives
- $48M over four years, starting in 2025-26, and $15.8M ongoing, to expand the reach of the Canada Student Loan Forgiveness Program
- $10M over two years to increase training for early childhood educators through the Sectoral Workforce Solutions Program
- $161.9M over five years, with $148.8M ongoing, to amend the Canada Education Savings Act
- $9.5M in 2024-25 to Pathways to Education Canada to support youth in low-income communities
- $8M in 2024-25 to Indspire to continue investing in the education of First Nations, Inuit and Metis
- $50M over two years, starting in 2025-26, for the Supports for Student Learning Program
- Extend for an additional year the increase in full-time Canada Student Grants from $3,000 to $4,200 per year, and interest-free Canada Student Loans from $210 to $300 per week
- $1.1B in 2024-25 to increase students grants and loans availability for the 2024-25 school year
- $253.8M over four years, starting in 2025-26, and $84.3M ongoing, to permanently expand the reach of the Canada Student Loan Forgiveness Program to more health care and social services professionals working in rural and remote communities
- Review the designated educational institution status of private learning institutions for the purposes of the Canada Student Financial Assistance Program
- $154.6M over five years, and $32.3M per year ongoing, to modernize the shelter allowances used by the Canada Student Financial Assistance Program when determining financial need
- $18.9M over five year, with $4M per year ongoing, to permanently eliminate the credit screening requirement for mature students applying for Canada Student Grants and Loans for the first time
- $207.6M for the Student Work Placement Program; $200.5M for Canada Summer Jobs; $150.7M for the Youth Employment and Skills Strategy Program
- $500M over five years for the creation of a new Youth Mental Health Fund
- Introduce a Safe Long Term Care Act to support new national long-term care standards
- Launch consultations in June on interoperability for farmers and to develop a broader right to repair framework for Canadian consumers, which will focus on durability, repairability, and interoperability
- Call on provinces and territories to amend their contract laws to support a general right to repair and interoperability
- $62.9M over three years to renew and expand the Local Food Infrastructure Fund
- $64M to support a $250,000 interest-free limit on the Advance Payments Program loans for the 2024 program year
- Strengthen the transparency of fees for optional services charged by airlines
- Work with provinces and territories to identify and target junk fees, defined by the government as unnecessary fees charged by banks and other companies
- The federal Office of Consumer Affairs will help reveal junk fee practices by advancing research and advocacy projects
- Cap the NSF fees charged by banks to $10 per instance
- Establish $0 per month and up to $4 per month bank accounts by working with banks to secure enhanced agreements
- Mandate Financial Consumer Agency of Canada to oversee, administer, and enforce Canada’s Consumer-Driven Banking Framework
- $4.1M over three years for policy work necessary to establish and maintain a consumer-driven banking oversight entity and framework, including the implementation of a national security regime
- Amend the Criminal Code to enhance enforcement of the criminal rate of interest
- Work with provinces and territories to harmonize and enhance consumer protections
- $2B over five years to launch a new AI Compute Access Fund and Canadian AI Sovereign Compute Strategy
- $1.8B over five years to increase core research grant funding and support Canadian researchers, with $748.3M per year ongoing to SSHRC, NSERC, and CIHR
- $3.1B over 11 years, starting in 2025-26, with $1.5B in remaining amortization, to Atomic Energy of Canada Limited to support Canadian Nuclear Laboratories
- $7.2B over five years, and an additional $25B from 2029-2035 for the Clean Electricity investment tax credit
- $200M over five years to boost AI start-ups
- $100M over five years for the National Research Council’s AI Assist Program
- $50M over four years, starting in 2025-26, to support workers who may be impacted by AI
- $50M over five years to create an AI Safety Institute of Canada
- $5.1M in 2025-26 to equip the AI and Data Commissioner Officer with the necessary resources to begin enforcing the proposed Artificial Intelligence and Data Act
- $3.5M over two years to advance Canada’s leadership role with the Global Partnership on Artificial Intelligence
- $6.7M over five years to Transport Canada to establish the Pre-Load Air Cargo Targeting Program to screen 100% of air cargo bound for Canada
- $725M over five years to allow businesses to immediately write off the full cost of investments in patents, data network infrastructure equipment, computers, and other data processing equipment
- Launch a second phase of consultations on more specific policy parameters, to hear further views from businesses and industry on specific and technical reforms for SR&ED tax incentives
- $600M over four years, starting in 2025-26, with $150M per year ongoing, for future enhancements to the SR&ED program
- $26.9M over five years, with $26.6M in remaining amortization and $6.6M ongoing, to the granting councils to establish an improved and harmonized grant management system
- $825M over five years, with $199.8M per year ongoing, to increase the annual value of master’s and doctoral student scholarships to $27,000 and $40,000, respectively, and post-doctoral fellowships to $70,000
- $30M over three years to support Indigenous participation in research
- Work with Talent for Innovation Canada to develop a pilot initiative to build an exceptional research and development workforce in Canada
- $8.6M to the Canadian Space Agency for the Lunar Exploration Program
- New National Space Council to deliver a whole-of-government approach to space exploration, technology development, and research
- $14.5M over two years to Innovation, Science and Economic Development Canada for the Innovation Asset Collective
- Establish a new a new 10% Electric Vehicle Supply Chain investment tax credit
- $90.9M over 11 years to the Canada Revenue Agency to administer the new major economic investment tax credits
- $21.4M over 11 years to the Department of Finance to complete the implementation, including legislation, of the major economic investment tax credits
- $9M over three years to the Privy Council Office’s Clean Growth Office
- Disburse up to $500M per year from Clean Fuel Regulations compliance payment revenues to support biofuels production in Canada
- $6.1M over two years for the Clean Growth Hub
- Launch the first-ever Canadian Survey on Interprovincial Trade in June
- Return fuel charge proceeds from 2019-20 through 2023-24 to an estimated 600,000 businesses through a new refundable tax credit
- $200M over two years, starting in 2026-27, on a cash basis, to increase access to venture capital for equity-deserving entrepreneurs, and to invest in underserved communities and outside key metropolitan hubs
- $158.5M over two years, on a cash basis, to Canada’s Regional Development Agencies for the Regional Economic Growth through Innovation program
- $72.M over three years to support the Canadian Chamber of Commerce’s Business Data Lab
- Establish a right to disconnect policy in the Canada Labour Code
- $3.1M over two years to enable the Labour Program at Employment and Social Development Canada to minimize labour disputes, respect the collective bargaining process, and secure the stability of Canada’s supply chains
- $263.5M over four years to extend support for seasonal workers in targeted regions until October 2026
- $607.9M over two years to Transport Canada to top-up the Incentives for Zero-Emission Vehicles program
- $6.9M over five years, with $1.4M ongoing for the early warning system for extreme weather events
- $156.7M over five years, with $388.5M in remaining amortization, for capital investments in Canada’s national parks, national marine conservation areas, and historic sites
- $190.9M over five years, with $0.1M in remaining amortization for the Chemicals Management Plan
- $273.6M over six years, with $29.3M ongoing, for Canada’s Action Plan on Combating Hate
- $32M over six years, and $11M ongoing, for Public Safety Canada to further enhance the Security Infrastructure Program
- Amend the Criminal Code to provide additional tools for law enforcement and prosecutors to address auto theft
- Amend the Radiocommunications Act to regulate the sale, possession, distribution, and import of devices used to steal cars
- Amend the Income Tax Act to increase the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit from $3,000 to $6,000
- $800,000 to Natural Resources Canada in 2024-25 to continue to partner with the International Association of Fire Fighters
- $304.M over two years to Public Safety Canada for the buyback of assault-style firearms
- $2.5M in 2024-25 to Public Safety Canada to support the Canadian Centre for Child Protection in preventing and responding to online child sexual exploitation
- $150M over three years to Health Canada for an Emergency Treatment Fund
- $30.6M over three years to Justice Canada to continue funding legal advisory and education services for victims of workplace sexual harassment
- $500M over five years to Infrastructure Canada for the Green and Inclusive Community Buildings Program
- $462.4M over five years, with $120.7M in remaining amortization, for VIA Rail network operations
- $63.1M over three years for Transport Canada to renew the Remote Passenger Rail Program
- $371.8M over six years to VIA HFR-VIA TGF Inc. and Infrastructure Canada to advance design and development of high frequency rail
- $649.4M over two years to improve elementary and secondary education on reserve
- $545.1M over three years for K-12 infrastructure
- $242.7M over three years for the Post-Secondary Student Support Program for First Nations students
- $225M over five years, with $45M per year ongoing, to Canadian Heritage for Indigenous languages and cultures programs
- $65M over five years, with $13M per year ongoing to Canadian Heritage, to permanently support the Indigenous Screen Office
- $60M over two years to support Friendship Centres
- $96.4M over two years, to Crown-Indigenous Relations and Northern Affairs Canada to advance rights-based discussions
- $275M over two years, to Indigenous Services Canada to maintain Indigenous Governance and Capacity programs
- $91M over two years, to Crown-Indigenous Relations and Northern Affairs Canada to increase the support provided to communities to locate burial sites at former residential schools
- $350M over five years, to renew Canada’s commitment to Indigenous Financial Institutions
- $596.2M over five years, and $119.2M per year ongoing to provide income support on reserve and expand programming to meet demand
- $117.6 million over three years, for case management and pre-employment supports to increase access to good job opportunities
- $213.5M over five years, and $49.8M per year ongoing, to implement income supports for eligible persons with disabilities aligned with those provided in all provinces and Yukon
- $562.5M in 2024-25 to support medically necessary services through the Non-Insured Health Benefits Program
- $390.4M over four years to build or renovate health facilities
- $104.9M over five years, for health transformation initiatives to support First Nations self-determination in delivery
- $630.2M over two years, to support Indigenous people’s access to mental health services
- $167.6M over five years, to combat anti-Indigenous racism in health care
- $23.2M in 2024-25, to Crown-Indigenous Relations and Northern Affairs Canada for Nutrition North Canada’s subsidy program to lower the cost of nutritious food
- $145.2M over five years, for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to work with First Nations to develop greater climate resiliency
- $1.3M over three years, to co-develop with Indigenous partners, on a priority first phase, a regional Red Dress Alert system to keep Indigenous Women, girls and two-spirit Peoples safe
- $87M over five years, and $11.3M per year ongoing, to the Department of Justice for Indigenous justice programming
- $267.5M over five years, and $92.5M per year ongoing to Public Safety Canada for the First Nations and Inuit Policing Program
- $200M over five years, to repair, renovate and replace policing facilities in First Nations and Inuit communities
- $8.1B over five years, and $73B over 20 years to respond to global threats and to protect the well-being of Canadian Armed Forces members
- $1.2B over 20 years to support DND’s Capital Investment Fund
- $655.7M over eight years, with $191.1M in remaining amortization, and $114.7M ongoing to the Canadian Security Intelligence Service
- $46.9M over five years, with $8.5M in remaining amortization, and $11.1M ongoing, to Natural Resources Canada to renew the Polar Continental Shelf Program
- $3.5M in 2024-25 to Polar Knowledge Canada
- $1.6B over five years to the Department of National Defence for the provision of lethal and non-lethal military aid to Ukraine
- $216.7M over five years, starting in 2025-26, for Canada’s share of the European Bank for Reconstruction and Development’s general capital increase for Ukraine’s reconstruction
- Introduce legislative amendments to the Proceeds of Crime, Money Laundering and Terrorist Financing Act (PCMLTFA)
- $29.9M over five years, with $5.1M in remaining amortization and $4.2M ongoing, for the Canada Border Services Agency to support the implementation of its new authorities under the PCMLTFA
- $350M over two years to Global Affairs Canada to enhance Canada’s ability to respond to large-scale and deteriorating humanitarian crises around the world
- Increase the inclusion rate on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and trusts from one-half to two-thirds, for an estimated $19B in new revenue over five years
- Expand the lifetime capital gains exemption to $1.25M from just over $1M, and index the exemption to inflation
- Increase the tobacco excise duty by $4 per carton of 200 cigarettes
- Increase the vaping excise duty rates by 12 per cent
- $11.1M over five years to the Treasury Board of Canada Secretariat to implement a whole-of-government cyber security strategy
- $27M over five years, and $2.3M ongoing, to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- $743.5M over five years and $159.M ongoing to support the stability and integrity of Canada’s asylum system
Next Steps
The budget speech comes with a ways and means motion which gives Parliament four days to debate its contents. That is followed by a confidence vote.
The government will advance legislative items by tabling omnibus budget implementation acts. The Liberals will want to be strategic in their priorities for the first budget bill, if they hope to pass before the summer break.
After a second reading vote in both the House and the Senate, the budget bill is referred to the finance committee to hear from officials and stakeholders. This is an opportunity for them to consider amendments to the bill.
House and Senate finance committees can engage in pre-studies of the budget bill before it’s referred. They can also split the bill so it can be studied in other committees.
A draft version of the budget bill will be available in advance of official tabling.
The government will likely table a second budget implementation act targeted for Royal Assent in the fall. The finance minister will also spend the summer and fall preparing for the Fall Economic Statement. This is an opportunity to course correct on budget policy, if necessary.
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Click here to view the complete budget documentation.