Finance Minister Chrystia Freeland is postponing a balanced budget indefinitely and is instead committing to a range of small measures for the public but which increase a debt that is growing visibly.
This latest update includes $13.2 billion in new spending over the next six years, a figure that rises to $21 billion when we include the measures included in the last spring budget. From next year, debt costs will reach between 7 and 8 billion, the equivalent of spending dedicated to health transfers.
Here’s what to remember from the economic update presented by the Trudeau government on Tuesday.
Another tile for AirBnb
Faced with a housing crisis of historic proportions, the Trudeau government is giving cities and provinces a helping hand to tackle short-term rental platforms like AirBnB. As of January 1, cities that have adopted such regulations will be able to refuse tax deductions related to costs incurred by landlords using these platforms. Ottawa will grant $50 million over three years to cities to help enforce regulations. These measures could ultimately free up 30,000 housing units, according to Minister Freeland. The objective: “to encourage the return of short-term rentals to the long-term housing market”.
Calm the ardor of the banks
Ottawa is also tackling a series of banking fees that affect the most disadvantaged. This involves firstly reducing fees for insufficient funds – which sometimes reach $50 – but more broadly also making no-fee or low-fee accounts more accessible to a greater number of people. The Financial Consumer Agency of Canada (FCAC) will have to work with banks to allow more debit transactions, bill payments and online transfers without fees. Finally, Ottawa wants to grant an independent ombudsman the power to resolve complaints against banks.
Travel more simply with children
Still with the aim of eliminating “unwanted fees”, the government wants to force airlines to offer parents the choice of seating their child aged 14 and under next to them on the plane, at no additional cost.
Parental leave for adoption
In addition to the benefits offered to new parents who choose to adopt a child, Minister Freeland plans to expand employment insurance to offer 15 weeks of parental leave that can be shared by the couple. Ottawa estimates the number of families who will be able to benefit from it at 1,700, at a total estimated cost of $48 million for the next six years.
Tax holiday for psychotherapy
The federal government wants to eliminate the GST on consultations with psychotherapists and counseling therapists. This surprise measure is expected to cost the public treasury 50 million over the next five years.
An investigation into roaming charges
Roaming fees are often the source of many (bad) surprises for Quebec travelers outside the borders. Ottawa has given the Radio-television and Telecommunications Commission (CRTC) the mandate to investigate this practice and return with a report on ways to counter this scourge next year.