Canadians will get a look at the state of federal finances when Deputy Prime Minister Chrystia Freeland tables her budget next month.
The government has been trying to rein in spending after years of big COVID-era budget deficits that more than doubled the national debt to roughly $1.2 trillion — a debtload that is costing Ottawa tens of billions of dollars a year to finance in an era of higher interest rates.
Freeland’s fall economic statement projected a budget deficit of $38.4 billion for the upcoming 2024-25 fiscal year. That number could move higher — or lower — depending on how the government has planned for the penultimate budget of its mandate.
The budget will give Canadians some insight into the government’s priorities in what could be one of the last spending documents before an expected 2025 election.
The NDP has agreed to prop up the Liberals until next year and a national vote could follow after the supply-and-confidence agreement between the two parties comes to an end.
Freeland has been involved in months of formal pre-budget consultations with interested parties who are jockeying to get more federal cash.
While it has pushed to cut spending — the main estimates tabled last week suggest the government wants to “refocus” or divert spending worth about $4.8 billion a year by 2026-27 and beyond — it’s likely the government will reveal some new funding for its priority files.
The government has tried to tackle the housing supply crunch with a series of initiatives, including the housing accelerator fund that sends extra money to cities that change their municipal planning laws to allow for more homes to be built.
The government also lifted the federal sales tax on new rental construction, a costly measure that some home builders say is already making a difference in the cost of construction.
Freeland could earmark more cash for programs that bolster the country’s housing stock. The Canadian Mortgage and Housing Corporation (CMHC) says the country needs 3.5 million more units by 2030 to restore housing affordability.
The government is facing political heat from Conservative Leader Pierre Poilievre, who has made the country’s housing woes a key plank of his policy platform.
Conservative MP Pierre Poilievre speaks during a news conference in Toronto on housing policy on April, 19, 2022. (Alex Lupul/CBC)
In a media statement announcing the budget date, Freeland suggested there’s more coming for housing.
“Our economic plan is about building more homes faster, making life more affordable and creating more good jobs. This plan will unlock pathways to a good middle class life for the next generation — because Canada is stronger when everyone has an equal chance to succeed,” she said.
Freeland also conceded last week at a news conference that more action is required to restore housing affordability.
“The single biggest thing in a family’s budget is paying your mortgage or the rent. We just have to build more, faster. We are committed to that. We are doing it,” Freeland said.
The Federation of Canadian Municipalities (FCM), the group that represents cities and towns, has also asked the government to renew some infrastructure programs that are due to expire — a cash injection they say they need to keep up with a booming population.
Prime Minister Justin Trudeau promised municipal leaders last May that the “next long-term infrastructure plan will be revealed this fall” — but it never materialized.
“We were promised infrastructure funding, and to this day, we have not heard of a plan. So as the budget comes closer and closer, we’re getting more and more concerned that there’s no plan,” FCM president Scott Pearce told reporters at a news conference.
Prime Minister Justin Trudeau makes an announcement highlighting Budget 2022 investments in electric vehicle infrastructure in Victoria in April 2022. (Ken Mizokoshi/CBC)
Freeland has defended the government’s record on infrastructure spending.
“There is no federal government in Canadian history that has invested as ambitiously and as aggressively in infrastructure as our government. It was the centrepiece of our 2015 campaign commitment and we have delivered on that,” Freeland said, touting Ottawa’s plan that will allocate about $7 billion a year in 2025-26.
Pharmacare, one of the government’s big-ticket items, will not be included in this budget because there’s still legislation coming before Parliament to enact the regime.
Health Minister Mark Holland also has to cut deals with the provinces and territories before any money can be spent on drug coverage.
The government also hasn’t decided whether it will pursue a fully universal, single-payer pharmacare program, which would be much more costly than its current plan of just covering contraception and diabetes treatments.
The government is also under pressure to increase military spending.
Some of the country’s NATO allies have noted Canada has consistently failed to meet its promise to spend two per cent of GDP on the armed forces — a commitment that other members routinely meet or exceed.
It’s unlikely Freeland’s budget will allocate what’s required to hit the two per cent mark, as that would require an extra $20 billion a year in spending.
New Brunswick voters have elected a Liberal majority government, tossing out the incumbent Progressive Conservatives after six years in power and handing the reins to the first woman ever to lead the province. Liberal Leader Susan Holt spent much of the campaign rolling out proposed fixes for a health-care system racked by a doctor shortage, overcrowded emergency rooms and long wait-times. She promised to open 30 community health clinics across the province by 2028. (Oct. 22, 2024)
Susan Holt has made history in New Brunswick by becoming the first woman to serve as the leader of the province’s Liberal Party, a significant milestone in the province’s political landscape. Holt’s leadership victory signals a new era of representation, gender equality, and change in the region, which has long been dominated by male politicians.
Holt’s journey to the top has been one of perseverance and dedication. Before entering politics, she built a distinguished career in the private sector, where she held numerous leadership positions. Her experience in business development and public policy has equipped her with the skills needed to navigate the complex world of politics.
In a province where women have historically been underrepresented in politics, Holt’s election represents a watershed moment. Women’s involvement in leadership roles has been steadily increasing nationwide, but New Brunswick, like many parts of Canada, has seen slower progress in achieving gender parity. Holt’s rise to the top of the Liberal Party not only shatters a glass ceiling but also serves as an inspiration for future generations of women aiming for political leadership.
As the leader of the New Brunswick Liberal Party, Holt has laid out a vision of inclusivity and progress. Her policies focus on economic development, healthcare reform, environmental sustainability, and addressing social issues that have plagued the province. She has also emphasized the importance of transparent governance and creating opportunities for underrepresented communities, making her platform both modern and forward-thinking.
Holt’s leadership arrives at a time when many voters are calling for change, especially in the face of challenges like economic uncertainty and the need for healthcare improvements. She aims to bring fresh ideas to tackle these issues while ensuring that all citizens, regardless of their background, have a voice in government decisions.
Susan Holt joins the ranks of other trailblazing women across Canada who have led provincial parties and governments. Women like former Alberta Premier Rachel Notley and Ontario’s Kathleen Wynne have paved the way, and now Holt is contributing to this growing legacy of female political leadership in Canada.
Her achievement highlights not only the growing number of women entering politics but also the demand for leaders who can bring diverse perspectives to the table. In a field often dominated by entrenched traditions, Holt’s election is a step toward a more inclusive and representative political landscape in New Brunswick.
Holt’s leadership signals a broader shift in Canadian politics, where more women and diverse voices are gaining prominence. For young women across the country, her rise serves as a powerful reminder that leadership roles are within reach, even in traditionally male-dominated spheres.
With her election, Susan Holt has proven that perseverance, skill, and a vision for change can break even the toughest barriers. Her leadership will not only reshape New Brunswick’s political future but also inspire others across Canada to pursue leadership positions and continue to challenge the status quo.
NDP Leader Carla Beck has two planned campaign events today, starting the day with an availability in Moose Jaw and then later this evening attending an event in the capital with the Regina Medical Staff Association.
Saskatchewan Party Leader Scott Moe, meanwhile, will speak in Prince Albert at the start of Voting Week in the province.
Saskatchewan residents can vote for five days starting today in the lead-up to next week’s provincial election, although polls won’t be open Sunday.
The NDP and the Saskatchewan Party are urging voters to cast their ballots early.
Voters can find their polling stations on their information cards or by visiting the Elections Saskatchewan website.
Chief electoral officer Michael Boda says there are about 810,000 registered voters in Saskatchewan.
This report by The Canadian Press was first published Oct. 22, 2024.
