{"id":9739,"date":"2023-04-27T12:00:00","date_gmt":"2023-04-27T12:00:00","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/2023-federal-budget-a-madeincanada-plan\/"},"modified":"2023-10-24T04:30:24","modified_gmt":"2023-10-24T04:30:24","slug":"2023-federal-budget-a-madeincanada-plan","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/2023-federal-budget-a-madeincanada-plan\/","title":{"rendered":"2023 Federal Budget: A Made-In-Canada Plan"},"content":{"rendered":"
While inflation has cooled for the second consecutive month \u2014 a decrease to 5.2 percent in February from January\u2019s 5.9 percent result after 40-year highs last summer \u2014 grocery bills remain high. In fact, groceries are the single highest variable cost category for Canadian families on average, outpacing heavy-hitter households: energy consumption.<\/p>\n
Recent research polls show the economy and, more specifically, inflation remains among the top issues weighing on the minds of Canadians\u00a0coast to coast.<\/p>\n
The full 2023 federal budget, entitled \u201cA Made in Canada Plan,\u201d can be\u00a0read here<\/a>.<\/p>\n In general terms, it shows that the federal deficit is projected to be $43 billion this fiscal year, and Finance Minister Chrystia Freeland is no longer forecasting that federal coffers could be back in the black by 2027-2028.<\/p>\n The government unveiled its continued deficit spending targeted at Canadians’ pocketbooks, public health care, and the clean economy.<\/p>\n Adding to the deficit may have ruffled some feathers.<\/p>\n In response to criticisms, Freeland had this to say,\u00a0\u201cNew measures to support a thriving net-zero Canadian economy\u00a0will generate good jobs and broad-based prosperity.\u201d<\/p>\n In essence, as part of the national strategy to combat inflation, the federal government is choosing to increase spending versus cutting it back to meet the revenue shortfall.<\/p>\n With the cost of food in stores rising by 10.6 percent year over year last month, according to Statistics Canada, the federal government is proposing a new one-time \u201cgrocery rebate.\u201d<\/p>\n An eligible couple with two children could receive payment of up to $467. A senior citizen would receive $225, while a single individual would receive $234. The federal budget also speaks to a one-time payment to combat inflation.<\/p>\n Critics of the budget have questioned how helpful these one-offs are when inflation is an ongoing issue being faced by Canadian families.<\/p>\n To that, Albertan MP Randy Boissonnault noted that it\u2019s a balancing act. In his opening, the government needs to protect Canada\u2019s AAA credit rating on the global economic stage. Also of importance is to provide some relief to Canadian households until inflation levels out, which can be expected by December 2023, according to the Bank of Canada\u2019s latest prediction.<\/p>\n The federal government plans on spending $20.9 billion in new money on growing the green economy.<\/p>\n Arguably the centrepiece in Tuesday’s budget was the chapter on spurring economic growth in Canada’s clean energy sectors\u00a0through investment tax credits, low-cost strategic financing, and targeted programs to foster growth in critical minerals and other key sectors such as electric vehicles.<\/p>\n Clean electricity has been touted as “the backbone” of the federal government’s plan.<\/p>\n Its opportunity is two-fold; to tackle climate change and keep Canada competitive in a low-carbon future by harnessing the economic opportunities of the federal investment.<\/p>\n This portion of the federal spending plan includes:<\/p>\n “In the months and years to come, we must seize the remarkable opportunities for Canada that are presented by two fundamental shifts in the global economy: the race to build the clean economies of the 21st century, and our allies\u2019 accelerating efforts to friendshore their economies by building their critical supply chains through democracies like our own,”<\/em> reads Freeland’s foreword.<\/p>\n When asked whether this budget served Albertans well, one politician seem to align well with Freedland\u2019s when he said, \u201cWith its strong focus on investment attraction, job creation, and economic growth, Budget 2023 sets the stage for Alberta to remain Canada\u2019s economic engine for decades.\u201d<\/em><\/p>\n Budget 2023 announces that financial institutions are now able to start offering the Tax-Free First Home Savings Account to Canadians as of April 1, 2023.\u201d<\/p>\n Obviously targeting first-time home buyers, we asked Jesse Davies, a long-standing resident of Alberta, REALTOR\u00ae and leader of the\u00a0Jesse Davies Team<\/a>,\u00a0whether he felt like this would move the needle for first-time home buyers. Here\u2019s what he had to say,<\/p>\n \u201cWe definitely think this will help first-time home buyers in the next few years save up for a downpayment with the introduction of a tax-free saving account. The annual limit of $8,000 is tax-free and tax-deductible with a total limit of $40,000 which you don\u2019t need to pay back.\u201d<\/em><\/p>\n Despite the 2023 federal budget acknowledging, \u201cHomes should be for Canadians to live in\u2014not a financial asset class\u2026A lack of affordable housing also has an impact on our economy.\u201d, there\u2019s little new in this budget when it comes to new housing measures.<\/p>\n The \u201cMade-in-Canada Plan\u201d document acknowledges housing as \u201c\u2026is a complex and longistanding issue\u2014one that requires a real plan to address the multitude of factors that are making housing more expensive in Canada,\u201d but is criticized for doing little beyond mentioning existing or ongoing efforts and allocating $4 billion more for the Canada Mortgage and Housing Corporation “to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.<\/p>\n This year\u2019s federal budget announced the government’s intention to support the reallocation of funding from the National Housing Co-Investment Fund’s repair stream to its new construction stream, as needed, to boost the construction of new affordable homes for the Canadians who need them most.<\/p>\n <\/p>\n We once again leaned on someone who\u2019s immersed in real estate in\u00a0Calgary communities<\/a>\u00a0on a daily basis, REALTOR\u00ae extraordinaire Jesse Davies, for his perspective on whether the Federal Government\u2019s budget does enough to address the affordable housing issue for Albertans.<\/p>\n \u201cAffordable housing is attractive to a certain demographic but usually is catered to individuals or families who are a long way away from being qualified to buy. This will take some renter’s demand off the table, but we don\u2019t see it helping the supply crunch for buyers.\u201d<\/em><\/p>\n By some accounts, the budget went too far in government spending and fell short of the previous promise to balance the books. Others criticize the 2023 plan for not providing enough support to Canadians when inflation worries are at an all-time high. We, at Canadian Real Estate Wealth, will wait with near-baited breath to see which perspective rings true, all while counting our nickels.<\/p>\n Considering an investment into Calgary real estate? The Jesse Davies team can help you find the right place to put your hard-earned money, whether it be a pre-construction condo, a rental property, or a joint-venture initiative. Reach out to Jesse via email at jesse@jessedavies.ca<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" While inflation has cooled for the second consecutive month \u2014 a decrease to 5.2 percent in February from January\u2019s 5.9 percent result after 40-year highs last summer \u2014 grocery bills remain high. In fact, groceries are the single highest variable cost category for Canadian families on average, outpacing heavy-hitter households: energy consumption. Recent research polls […]<\/p>\n","protected":false},"author":26,"featured_media":27789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9739"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=9739"}],"version-history":[{"count":5,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9739\/revisions"}],"predecessor-version":[{"id":26876,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9739\/revisions\/26876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27789"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=9739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=9739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=9739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Combatting Food-Flation<\/strong><\/h2>\n
Growing A\u00a0Green Economy<\/strong><\/h2>\n
\n
A Home Run or No?<\/strong><\/h2>\n
In Conclusion<\/strong><\/h2>\n