Canada’s Finance Minister and Deputy Prime Minister, the Honourable Chrystia Freeland, tabled the 2024 Federal Budget in the House of Commons.
Budget 2024, totalling $39.3 billion, prioritizes housing ($8.5 billion) while taxing individuals and corporations with capital gains, and spending $52.9 billion more than planned over the next five years.
The government will deliver a suite of economic investment tax credits, totalling $93 billion, to drive clean growth, secure the future of Canadian businesses in Canada, and create jobs.
The federal deficit is projected to be $39.8 billion in the 2024-25 fiscal year. The government estimates to generate $21.9 billion in new revenue over the next five years.
Budget Highlights:
Housing
View the full housing strategy here.
- The Housing Accelerator Fund is being replenished with an additional $400 million and a new Housing Infrastructure Fund has been established and will receive an investment of $6 billion.
- The Apartment Construction Loan Program will be topped up with an additional $15 billion.
- A new launch to Canada Builds to lead a Team Canada effort to build homes to leverage the Apartment Construction Loan Program.
- $1.5 billion will be invested into the Canada Rental Protection fund to create new affordable apartments and protect affordable housing.
- The Reaching Homes Program will receive an additional $1 billion over four years.
- The Affordable Housing Fund will receive an additional $1 billion to support affordable housing, supportive housing, and shelters, and launch a Rapid Housing stream.
- $918 million will be invested over five years to narrow the housing gap in Indigenous communities.
- $1.1 billion will be invested over ten years to transform half of the federal government’s office portfolio into housing.
Health and Social Policy
- $77.1 million over four years, starting in 2025-26, to integrate internationally educated health care professionals into Canada’s health workforce.
- Additional $50 million over two years for the Foreign Credential Recognition Program to help workers in construction and health care.
- $243 million will be invested toward post-secondary education for the next generation of First Nations university, college, and post-secondary students.
- The Safe Long-Term Care Act will be introduced to support national long-term care standards.
- $500 million will be invested into a new Youth Mental Health Fund.
- $1 billion over five years will be made into a National School Food Program to provide 400,000 meals to kids each year.
- $6 billion increase to the Canada Disability Benefit.
- $1.5 billion over five years, starting in 2024-25, to Health Canada to support the launch of the National Pharmacare Plan which includes $1,700 per year in insulin expenses, metformin costs of $100 per year and various contraceptive costs.
Infrastructure
- Additional $500 million over the next five years will be added to the Green and Inclusive Community Buildings (GICB) fund starting in 2024-25.
- Additional $900 million to the Indigenous Infrastructure Program.
- $33.5 billion through the Investing in Canada Infrastructure Program toward support for infrastructure projects across four streams: public transit; green infrastructure; community, culture, and recreation infrastructure; and rural and northern communities infrastructure.
- The continuation of yearly allotments for the Disaster Mitigation and Adaptation Fund ($3.8 billion over ten years) and the National Trade Corridors Fund ($4.3 billion over eleven years) for the 2024-25 year.
Industry and Energy
- $5 billion in loan guarantees for Indigenous communities to support major projects like critical mineral mines and natural gas plants. The loan guarantees would be for natural resource and energy projects to advance economic reconciliation and self-determination.
Additional $16.5 million over two years to Natural Resources Canada, which will include $3.5 million over two years to support capacity funding for Indigenous communities to deliver the Indigenous Loan Guarantee Program by Canada Development Investment Corporation (CDEV).
$36 million over three years to renew support for the Strategic Partnerships Initiatives’ Clean Energy program to promote Indigenous participation in clean growth opportunities.
$2.4 billion to build artificial intelligence capacity to provide access to computing capabilities and technological infrastructure.
Other Highlights
- Capital gain taxes will be paid by individuals and corporations in order to collect an additional $19 billion in revenue.
- The inclusive rate will increase from one-half to two-thirds on capital gains above $250,000 per year for individuals, and all capital gains by corporations.$10 million over two years starting in 2024-25 for the Skilled Trades Awareness and Readiness Program.
- An increase in military spending to $8.1 billion over the next five years, totalling $73 billion over the next 20 years.
- $42 million to CBC Radio-Canada for news and entertainment programming.
- $30 million for the Canada Border Services Agency toward addressing money laundering and terrorist financing.
- $656 million over the next eight years to combat emerging global threats including foreign interference and violent extremism.
- $2 million to create the Canada Financial Crimes Agency.
- The government will shrink the public service over four years by cutting 5,000 jobs through attrition to save $4.2 billion.
- Increase to the total tobacco excise duties to $5.49 per carton and an increase to the vaping excise duty rates by 12%.
