The 2023-24 Canadian budget, presented by Finance Minister Chrystia Freeland, includes a proposal to boost the inclusion rate on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and trusts from one-half to two thirds. This measure aims to increase tax revenue from capital gains and address income inequality.
Housing Initiatives
One of the key government measures outlined in the budget is the C$15 billion top-up to the Apartment Construction Loan Program to build a minimum of 30,000 new apartments. Additionally, the budget includes the launch of a new C$6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrading of critical housing infrastructure. These initiatives seek to address the housing crisis in Canada and provide affordable housing options for Canadians.
Another significant proposal in the budget is the launch of the Canada Rental Protection Fund, with a budget of C$1.5 billion, to protect affordable housing and create thousands of new affordable apartments. The budget also includes a top-up of the Housing Accelerator Fund with an additional C$400 million to support municipalities in cutting red tape, fast-tracking home construction, and investing in affordable housing. Furthermore, the budget offers up to C$5 billion in loan guarantees to unlock access to capital for Indigenous communities, allowing them to invest in oil and gas projects.
The budget also includes a C$2.4 billion package of measures to boost artificial intelligence, highlighting the government’s commitment to supporting innovation and technological advancements in Canada. By investing in AI, the government aims to drive economic growth and create new opportunities in the technology sector.
While the 2023-24 Canadian budget includes several ambitious measures and proposals to address various issues such as housing affordability, income inequality, and technological advancement, it is important to critically analyze the potential impact and effectiveness of these measures. It is essential to consider the potential challenges and limitations of these proposals and ensure that they are implemented effectively to achieve the desired outcomes.