Finance Minister Chrystia Freeland’s second pandemic budget turns Canada’s fiscal focus to making life more affordable for people and giving a long-needed boost to Canadian productivity.
But Freeland is wrapping the budget in copious amounts of yellow caution tape, warning of extreme economic uncertainty posed by Russia’s invasion of Ukraine and the lingering effects of COVID-19.
She makes clear the budget is winding down pandemic-related spending that headlined the last two years, shifting to social economic drivers like housing, immigration and child care.
Freeland warns heavily about the security threat posed by Russia’s aggression in Europe, responding with more than $8 billion in new defence spending and up to $1 billion more in new loans for Ukraine.
Federal spending falls to $452 billion in the new fiscal year with a deficit of $52 billion, which are the lowest figures since before the pandemic but still significantly above pre-pandemic levels.
But the Liberals also say the spending is aimed at the long-term as well as to address structural issues within the national economy.
The government hopes to ease the housing crisis with more than $10 billion in funding meant to speed up home construction and repairs.
The commitments are part of a raft of promises that also include a two-year ban on foreign investors buying homes and tax measures meant to reduce speculation.
Increasing housing supply is the clear focus of the spending commitments, which include $4 billion for municipalities as part of a housing accelerator fund, $1.5 billion for affordable housing and $4.3 billion for Indigenous housing.
Ottawa says it will spend $4.3 billion over seven years to help improve Indigenous housing.
The Assembly of First Nations alone had asked to see $44 billion in the budget to address current housing needs, which include issues around repairs and overcrowding.
The 2022 spending plan released today gives $4 billion including $652 million this fiscal year to Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs to speed up work on the issue, including $2.4 billion for on-reserve housing.
NDP Leader Jagmeet Singh says his caucus will support the 2022 federal budget.
Singh says the budget introduced by Finance Minister Chrystia Freeland honours the agreement he made last month to support the Liberals on key votes like budgets in return for the government moving on NDP priorities in health care, housing and reconciliation.
Quinte News will have local reaction to Thursday’s budget.
With files from the Canadian Press
