Deputy Prime Minister and Minister of Finance Chrystia Freeland tabled the 2023 federal budget “A Made-in-Canada Plan”. The budget included three main themes: green technology investments, healthcare spending, and support for the rising cost of living. 

To attract investments in new machinery and equipment, the budget proposes a 15% to 30% tax credit for eligible investments in green technology. On the healthcare front, the budget includes a Canadian Dental Care Plan, as well as further details on the recently announced healthcare transfers. To support Canadians with the rising cost of living, the budget proposes to introduce a Grocery Rebate, as well as a need to target “junk fees” charged by some companies. 

The federal government is expecting a deficit of $40.1 billion in budget 2023-2024, a small reduction from the 2022 budget of $43 billion. The federal government is projecting deficits to lower throughout the subsequent years. 

Following consultations with the tourism industry, provincial and territorial counterparts, and Indigenous tourism operators, the government will present a new Federal Tourism Growth Strategy to chart a course for growth, investment, and stability in Canada’s tourism sector. As key components of the upcoming Strategy:

• Budget 2023 proposes to provide $108 million over 3 years, on a cash basis, starting in 2023-24, to the Regional Development Agencies to support communities, small businesses, and non-profit organizations in developing local projects and events.
• Budget 2023 also proposes to provide $50 million over 3 years, on a cash basis, starting in 2023-24, to Destination Canada to attract major international conventions, conferences, and events to Canada.
• This is more than twice as much as any previous investment in Tourism.

To further strengthen Canada’s transportation systems and supply chain infrastructure, Budget 2023 proposes to:

• Collaborate with industry, provinces, territories, and Indigenous Peoples to develop a long-term roadmap for Canada’s transportation infrastructure to better plan and coordinate investments required to support future trade growth;
• Provide $27.2 million over five years, starting in 2023-24, to Transport Canada to establish a Transportation Supply Chain Office to work with industry and other orders of government to respond to disruptions and better coordinate action to increase the capacity, efficiency, and reliability of Canada’s transportation supply chain infrastructure.

Budget 2023 proposes to provide $813.6 million in 2023-24 to enhance student financial assistance for the school year starting August 1, 2023. This includes:

• To help tradespeople invest in the equipment they need, Budget 2023 proposes to double the maximum employment deduction for tradespeople’s tool expenses from $500 to $1,000.
• To make the transition from school to working life easier, the federal government permanently eliminated interest on Canada Student Loans and Canada Apprentice Loans.
• Increasing Canada Student Grants by 40 per cent—providing up to $4,200 for full-time students.
• Raising the interest-free Canada Student Loan limit from $210 to $300 per week of study.
• Waiving the requirement for mature students, aged 22 years or older, to undergo credit screening in order to qualify for federal student grants and loans for the first time.

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