Canadian Finance Minister to Raise Taxes in Budget Speech

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Economy Nouvelles

Canada,Finance Minister,Taxes

Canadian Finance Minister Chrystia Freeland is expected to announce tax increases and reallocation of funds in her budget speech to support new initiatives and maintain fiscal stability.

OTTAWA - Canadian Finance Minister Chrystia Freeland is likely to raise taxes and re-apportion money in her budget speech on Tuesday to fund billions of dollars of new schemes to maintain her fiscal guardrail, according to a source and analysis of government finances.A source aware of the contents of the budget speech told Reuters on Monday the Freeland budget document will reveal a way to tax the wealthiest people.

Meanwhile, in the last two weeks, his top ministers announced a flurry of measures from the budget, committing billions of dollars to tackle a housing crisis as his government tries to win back voters shifting loyalty to the opposition. One was to cap the fiscal deficit at C$40.1 billion in the 2023-24 fiscal year - at about 1.4% of GDP. Second, to lower debt as a share of GDP for the 2024-25 fiscal year relative to its November estimate and keep the ratio declining thereafter. And finally, to keep the deficit from exceeding 1% of GDP from 2026-27.

Freeland will also have to reallocate money to fund these schemes and still meet the fiscal anchors, he added.

 

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