April 7, 2022 – Ottawa, Ontario – Department of Finance Canada
Today, the Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released Budget 2022: A plan to grow our economy and make life more affordable.
Since the depths of the pandemic recession, the government’s focus on jobs—keeping Canadians employed and their employers surviving—has allowed the Canadian economy to straighten up quickly and vigorously. Canada has seen the best jobs recovery in the G7, having recovered 112% of lost jobs and with an unemployment rate that sits at just 5.5%, close to the low of 5.4% in 2019, which was Canada’s best in five decades. .
In Budget 2022, the Government is making targeted and responsible investments to create jobs and prosperity today, and build a stronger economic future for all Canadians. These include:
- Investing in Canadians and making life more affordable: Canadians are the backbone of a strong and growing economy, and measures that promote access to housing and a growing workforce are imperative for economic growth. Budget 2022 housing measures include: putting Canada on a path to doubling housing construction over the next decade; helping Canadians save and buy their first home; prohibit foreign investment that makes housing less affordable for Canadians; and curbing unfair practices that make housing more expensive for Canadians. Budget 2022 also invests to ensure Canadian workers have the skills they need for the well-paying jobs of today and tomorrow, and will make it easier for the skilled immigrants our economy needs to thrive. settle in Canada. Budget 2022 makes significant additional investments in affordable child care, reducing backlogs of surgeries and medical procedures in our public health care system, and promoting reconciliation with Indigenous peoples.
- Investing in economic growth and innovation: The key to Canada’s long-term prosperity is economic growth. Budget 2022 builds on historic Budget 2021 investments in early learning and child care, which could increase real GDP by up to 1.2% over the next two decades, and includes other essential investments to make Canada’s economy both stronger and more innovative. These investments include a new Canada Growth Fund that will attract tens of billions of dollars of private investment into Canadian industries and jobs, and a new innovation and investment agency that will help boost productivity and growth. in our economy. Budget 2022 also includes up to $3.8 billion to implement Canada’s first Critical Minerals Strategy, a strategy that will create thousands of good jobs and capitalize on a growing need for minerals used in everything from telephones to electric cars. The measures also include steps to build more resilient supply chains, to reduce taxes for growing Canadian small businesses, and to spur creation and ensure the protection of Canadian intellectual property.
- Investing in a clean economy: Protecting our environment and fighting climate change is the right thing to do for the planet, and it’s also the right thing to do for our economy. In Budget 2022, the Government will help Canadians and Canadian businesses benefit from the global transition to a clean economy, including through new incentives for the development of clean technologies and carbon capture, use and storage . In addition to investing more to protect our lands, lakes and oceans, the government will also make it more affordable for Canadians to purchase zero-emission vehicles, build and expand a nationwide network of zero-emission vehicle charging stations, and new investments. into clean energy.
Canada entered the pandemic with the lowest net debt-to-GDP ratio of any G7 country, an advantage that has since grown relative to other countries. With Budget 2022, Canada will maintain this leadership position, while experiencing the second-fastest recovery in the G7 by the end of this year. With the federal government investing eight out of ten dollars to support Canadians and the Canadian economy during the pandemic, Budget 2022 represents a fiscally responsible approach to economic growth and building an economy that works for everyone. Crucially, it maintains the government’s fiscal anchor – a declining debt-to-GDP ratio and the unwinding of COVID-19-related deficits, which will ensure that Canada’s finances remain sustainable over the long term.
- Budget 2022 measures to make housing more affordable include:
- put Canada on track to double the construction of new homes over the next decade;
- Helping Canadians buy their first home, including introducing the Tax-Free First Home Savings Account and doubling the First-Time Home Buyers’ Tax Credit; and
- Launch of a new housing accelerator fund that will target the creation of 100,000 net new homes over the next five years.
- Budget 2022 measures to address climate change include:
- More than $3 billion in funding to make zero-emission vehicles more affordable and build a nationwide network of charging stations;
- Significant new investments to protect our lands, lakes and oceans; and
- The creation of the Canada Growth Fund to help attract tens of billions of dollars of private capital to build a net zero economy by 2050.
- Other important measures in Budget 2022 include:
- $5.3 billion over five years to provide dental care to Canadians with household incomes below $90,000 per year, starting with those under 12 in 2022, then increasing to those under 18, seniors and people with disabilities in 2023, and with full implementation by 2025. The program would be limited to families with incomes below $90,000 per year, with no co-payment for those with incomes less than $70,000 per year;
- Up to $3.8 billion to implement Canada’s first Critical Minerals Strategy;
- $11 billion in additional funding to continue to support Indigenous children and their families, and help Indigenous communities continue to grow and shape their future;
- More than $8 billion in new funding to better equip the Canadian Armed Forces, strengthen Canada’s contributions to our major alliances like NATO and NORAD, and strengthen Canada’s cyber security;
- Additional support for Ukraine and its people in the face of Russia’s illegal invasion, including up to $1 billion in new resources lending to the Ukrainian government through a new administered account for the Ukraine to the International Monetary Fund (IMF), and an additional $500 million in military aid;
- A temporary Canada Recovery Dividend, representing a one-time 15% tax on 2021 taxable income over $1 billion from Canada’s largest banking groups and life insurers, to help support the broader recovery from Canada ; and
- A permanent 1.5 percentage point increase in the corporate tax rate of banking and life insurance groups on taxable income over $100 million.