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A Plan to develop Our Economic System and make Standard of living more Affordable and Stylish.

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Budget Summary

The 2022 federal budget highlights two important policy proposals. The first one is targeted at boosting economic development and innovation. This is the first federal budget after the 2021 elections. The finance minister focuses on boosting the economy more sustainably.

The 2022 federal budget summary was released by Canadian deputy prime minister and minister of finance, Chrystia Freeland: A Plan to Grow Our Economy and Make Life More Affordable.

In the 2022 federal budget, the finance minister talks about affordable houses, climate change, economic growth and innovation, employment, public health care, a fair tax system, a planned borrowing strategy, and fiscal and economic estimates. 

Affordable houses 

Canadian Finance Minister Chrystia focuses on providing affordable and cheap houses to Canadians. The main problem that arose was that there was a shortage of houses, so they limited the number of houses per person could buy to solve this issue. Furthermore, they highlighted that they will help Canadians in buying their first home. They provide safety and rights to renters and buyers. Also, decrease the construction cost to make it more affordable. 

National Housing Strategy

The government’s creating 6000 units (1.5 billion) of rapid housing initiative was renewed by the government. Moreover, loans on low interest, forgivable loans to constructors who are building rental houses for cheap.

Co-operative housing strategy

The Co-operative Housing Development Program will cost $500 million, and cooperative housing will be built with loans totaling $1 billion.

Home buyers

Home buyers’ bills of rights will be developed for CMHC to around $5 million. Moreover, they also introduced a home buyer’s savings account. Canadians can now save up to $40,000 after tax.

Foreign buyers

In the 2022 federal budget, the finance minister put a 2 years ban on foreigners from buying property in Canada. Ban on both foreign commercial enterprises and individuals so more Canadians can buy affordable houses.

Climate change 

Fighting climate change and preserving our environment are morally good for the world as well as for our economy. The 2022 bill promised that the government would support a worldwide transition to a clean economy by creating new and creative incentives for the growth of new innovative technology, utilization, carbon capture, and storage.

Growth fund

The government will invest $15 billion in decarbonization, a safe and healthy environmental scheme. 

Zero emission vehicle 

The government has promised that it will increase its investment in renewable energy projects. It will also construct and extend a national network of zero-emission vehicles, which will cost 1.7 billion over the next 5 years. Encouragement to buy lower-cost zero-emission vehicles for Canadians, for instance, electric cars, vans, motorcycles, and buses, in addition to safeguarding our sea, land, and lakes. 

Economic growth and innovation 

Economic development is the secret to Canada’s long-term success. Budget 2022, investment in early learning and child care, which have the potential to boost real GDP by as much as 1.2% over the following years. It also contains other crucial investments to strengthen and diversify the Canadian economy. Canada’s growth fund will invest 10 billion dollars in Canadian businesses and employment, which will support productivity. 

Moreover, to create thousands of decent jobs and take advantage of the increasing demand for minerals, the government has also invested 3.8 billion dollars to implement Canada’s first critical mineral project.  

Employment 

In budget 2022, there is no additional pandemic benefit enhancement. The budget anticipates a decline in payments due to the jobs and employment crisis that happened during the pandemic. The budget anticipates a decline in payments. The federal government, however, does plan to implement training and other benefits for the employees

Public health care 

Public health care will get 50 million dollars throughout 2022-2023. It will include a national emergency stockpile that will help with PPE and new medical supplies. 

Dental care

A universal dental care project will get 5.3 billion dollars over the next 5 years and 1.7 billion dollars after that as promised by the government. People who are disabled, and individuals. Children under the age of 12 will not pay for dental care. However, this project is only available for families earning under $90,000 a year. For Canadians earning under 70,000, there will be no co-payments for them. 

Fair tax system 

A public, searchable register of the beneficial owners of corporations and trusts is one of the key tools that budget 2022 has ordered for tax evasion and international crime. CUPE has been a member of a coalition that has pushed for crucial changes in Canada’s tax transparency rules to fight against criminals and tax evaders. 

Nonetheless, the budget did not take any action on other significant tax equity proposals, corporations’ increasing tax rates, or enacting a new wealth tax. 

Defense and security 

The Canadian defense budget, according to budget 2022, increased expenditure by 8 billion dollars over the next 5 years moreover increasing Canada’s anticipated defense budget to 1.5% of GDP. The $8 billion also includes Ukraine assistance as asked by NATO members to keep paying.

Secondly, to improve Canada’s leadership in the armed forces, the budget that is allotted is $100 million for the next 6 years. This will cover the cost of modernizing the military justice system and promote cultural changes in the CAF. The federal budget has also promised to pay $875 million over five years for cyber threats and crime.

Conclusion: 

Canadians’ opinions on the government’s budget for 2022 were divided. Some people thought that the administration had strived to produce one of the most inventive and expanding budgets after the Covid 19 elections. Key topics that were addressed in the budget were housing, climate change, transportation, and others.

I’ve covered affordable housing initiatives, the rapid change in the environment, health care, defense and security, and a fair tax system in my blog.

I’m confident that after reading this post, you can see where the government will be investing money over the next five to six years. So that my readers may understand the advantages they will receive from the government and the planning they must do as a result. However, in your opinion, do you think the 2022 federal budget summary was life-changing for Canadians or not?

Salman Rundhawa
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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