2023 Canadian federal budget
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 Official logo of Budget 2023 | |
| Submitted to | House of Commons |
|---|---|
| Presented | 28 March 2023 |
| Passed | 22 June 2023 |
| Country | Canada |
| Parliament | 44th |
| Party | Liberal |
| Finance minister | Chrystia Freeland |
| Total revenue | CA$456.8 billion (projected) |
| Total expenditures | CA$496.9 billion (projected) |
| Deficit | CA$40.1 billion (projected)[1] |
| GDP | TBA |
| Website | Budget 2023 |
|
‹ 2022 2024› | |
The 2023 Canadian federal budget for the fiscal years of 2023–24, known as Budget 2023, was presented to the House of Commons by Finance Minister Chrystia Freeland on 28 March 2023.[2] The budget was meant to reflect Prime Minister Justin Trudeau's stated policy objective to "make life more affordable for Canadians"[3] while also reducing government expenditures.[4]
The 2023 budget is the seventh budget document introduced in the House of Commons under the premiership of Justin Trudeau. It comes at the heel of the first anniversary of the Russian invasion of Ukraine, following which Canada sent one billion dollars in military aid to Ukraine.[5]
United States President Joe Biden's Inflation Reduction Act of 2022 included unprecedented investments in initiatives aimed at promoting Green growth. Canada was expected to announce similar investments in its 2023 budget in order to remain competitive with its southern neighbour.[6]
On 22 June 2023, all parts of the budget received Royal assent, and became law.[7]
Measures
The budget included $43B in net new spending over six years,[8] including $20B for a new 15 per cent refundable tax credit to promote investment in green technologies.[9] $13B was also allocated to implement a means-tested dental care program, a policy originating in the NDP-Liberal deal of 2022.[8] The Canadian Dental Care Plan began rollout in December 2023.[10]
The budget introduced a "grocery rebate" of up to $467 for eligible families and up to $234 for eligible single people with no kids. The Canada Student Grants also saw a 40% increase in funding.[11]
Freeland issued $15B of spending cuts, achieved by defunding public services and cancelling previously announced programs.[12] A new tax 2% on stock buybacks was also introduced.[11]
Housing
The budget created the government's First Home Savings Account (FHSA), offering tax savings for first-time buyers, and budgeted roughly $925 million in 2023–2024 for the "housing accelerator fund," an incentive announced in Budget 2022 to encourage municipalities to make home construction easier.[13]
The budget relaxed Canada's strict rules on foreign home buying, and have given more foreign stake in developing commercial real estate. They also relaxed conditions of home buying for temporary work-permit holders and international students. This is a partial reversal of the proposed two-year ban on home buying by non-Canadians for increasing housing affordability and decreasing inflation. The ban was supposed to start by January 1, 2023 and be on effect till 2025.[14]
