Budget to include $10-billion for affordable housing
that promises $10-billion to make housing more affordable for Canadians, provides $8-billion in new defence spending, and aims to spur economic growth through green initiatives and a small-business tax cut.
The source said Ottawa will boost defence spending by $8-billion over roughly five years, largely to upgrade the North American Aerospace Defense Command , the continental defence system, and to buy weapons for Ukraine in its war against Russia. The additional money will not be enough to increase Canada’s military spending from the current level of 1.34 per cent of GDP to the 2 per cent requested by NATO.
Dan Kelly, president of the Canadian Federation of Independent Business, said his organization has long called for such a change. Mr. Kelly said on Wednesday that this would be “welcome news” and would encourage more small businesses to grow to medium-sized.As promised during last year’s election campaign, the source said, the budget aims to tackle soaring prices for housing. The Liberals will spend $4-billion to build 100,000 new homes in urban areas by 2025, and $2.
On climate change, a second senior government source said Ottawa will provide tax incentives to oil and gas companies to invest in carbon capture and storage. Budget measures will also include incentives to increase the use of hydrogen and renewable fuels, and to get Canadians and businesses to shift to zero-emission vehicles. The Globe is not identifying the source, who was not authorized to speak about budget matters.
Private sector economists say stronger revenue forecasts since December likely mean that trend could be steeper, but it will depend on how much new spending is announced in Thursday’s budget.