In the last federal budget before the next election, the Liberals are spending billions on everything from border enforcement to high speed internet, tackling the opioid crisis and creating a team to fight money laundering.
The government is bringing in more money than forecast but is spending all that and then some, projecting a $19.8-billion deficit for the 2019-20 fiscal year — that's $200-million more borrowing than anticipated.
It was also announced in Tuesday's budget that the moves towards national pharmacare continue by creating a new national drug agency to lower medication costs.
The Liberals say the new agency will help negotiate better drug prices and drive down the cost of medication for Canadians by up to $3-billion in the long term. The plan also involves creating a central list of drugs considered cost-effective and a strategy to lower the price of high-cost drugs used to treat rare diseases.
The moves are part of more than $1.7-billion in planned new spending over five years, and hundreds of millions more thereafter.
On the housing front, the federal government is promising to pick up part of the cost of a mortgage for first time home buyers. Qualifying buyers would be able to have the government pick up part of the cost of their mortgages to lower their monthly payments, with the amount of help depending on their income and whether they're buying a newly built or existing home.
Canadians could also soon be able to put $250 a year toward upgrading their skills, and get help to pay their bills during dedicated time off.
The Liberals are proposing to give every Canadian worker earning between $10,000 and about $150,000 a year a $250 refundable tax credit for training that can be saved up over time, a plan that is expected to cost $710-million over the next five years.
According to the document, the budget says the credit is expected to launch in late 2020, possibly a year after this fall's federal election and will apply to the costs of programs at eligible universities, colleges and training institutions.
Budget Highlights
- $19.8 billion projected deficit
- Overall federal debt of $705.4 billion
- First-time home buyer incentive to make ownership more affordable
- Home buyers' RRSP withdrawal limit increased to $35,000
- $10 billion more for rental construction financing initiative
- New Canada training benefit of $250 a year
- EI training benefit to provide income support for up to 4 weeks paid leave
- Lower interest rates on Canada student loans
- National pharmacare program at least 3 yrs away
- Increase the gis earnings exemption to $5000 a year by 2020
- New federal purchase incentive up to $5000 for electric vehicles
- Up to $1.7 billion over 13 yrs for a new national high-speed internet program
- $100 million over 3 yrs for western economic diversification
- $100 million over 4 yrs to support cleaner energy production
- $4.5 billion more over 5 years to improve living conditions on first nations
- $50 million over 5 yrs to support a national dementia strategy
- $37 million over 5 yrs to improve organ donation system across Canada
- $31 million more over 5 yrs to tackle the opioid crisis
- $25 million over 5 yrs to support a nationwide suicide prevention service
- $45 million over 3 yrs to support a new anti-racism strategy
- $145 million over 5 yrs for cyber security
- $1.2 billion over 5 yrs for border enforcement strategy
- Up to $3.9 billion in support for supply-managed farmers
- $24 million over 5 yrs to create an 'ace' team to fight money laundering
— With files from The Canadian Press & CTV News