Canada’s Budget 2024 Faces Criticism for Substantial Spending Increase
Image courtesy X.com/carfreeland
Finance Minister Chrystia Freeland's new budget, unveiled Tuesday, has sparked debate for its ambitious spending amid higher planned deficits and significant tax increases on wealthier Canadians and corporations.
Titled "Fairness for Every Generation," the budget commits more than $57 billion in new expenditures to appeal to younger generations grappling with an affordability crisis.
The budget outlines measures to increase housing supply and stabilize living costs, including launching a Public Lands for Homes Plan and a Canada Rental Protection Fund. These initiatives aim to facilitate the construction of 3.87 million new homes by 2031 and introduce protections for renters, although critics argue these measures — if achieved — won’t quickly alleviate housing affordability pains or broader economic challenges facing Canadians.
Further, the budget increases taxes on capital gains for individuals making more than $250,000 annually and extends this higher tax base to include large corporations and trusts. This shift is intended to siphon $20 billion over four years. Critics in the business community warn that this could discourage investment, potentially leading to slower economic growth and fewer job opportunities.
In her defence of the tax changes, Freeland emphasized "fairness," suggesting that it is reasonable for high earners and profitable corporations to contribute more to the public purse.
"Our government first came to office with a vow to strengthen and expand the middle class," said Freeland.
"Our work isn’t done. Budget 2024 renews our focus on unlocking the door to the middle class for millions of younger Canadians. We’ll build more housing and help make life cost less. We will drive our economy toward growth that lifts everyone up. That is fairness for every generation."
In contrast, Conservative Party leader Pierre Poilievre strongly criticized the government's approach as "wasteful," linking the Liberal budgetary deficits to the rising cost of living.
"It is getting too hot and too expensive for Canadians," he commented in the House of Commons.
NDP Leader Jagmeet Singh has tentatively welcomed some budget measures but criticized others, particularly the lack of aggressive action against rising grocery prices, attributing these shortcomings to the government's failure to confront corporate greed effectively.
Adding to the budget's security focus, the government has allocated significant funding to enhance the capabilities of the Canadian Security Intelligence Service (CSIS). An infusion of $655.7 million over the next eight years aims to expand CSIS's operations, particularly in Toronto.
READ MORE: Canada, Iran, and Uncle Sam: Unraveling Flight 752's Geopolitical Justice Tangle
The 2024 budget proposes a substantial increase in defence spending, allocating $8.1 billion over five years to various military and security agencies, including Global Affairs Canada (GAC). While the government justifies this as necessary to modernize Canada's defence capabilities in a changing world, critics argue that the massive financial commitment may not align with the actual security needs or economic priorities of Canadians.
READ MORE: Canada Ramps Up Military Spending by Billions Under US, NATO Pressure
Federal government spending inefficiencies have been a focal point in recent years. For example, a report by Auditor General Hogan last year scrutinized GAC for its failure to determine the impact of its major funding initiative aimed at promoting gender equality abroad. Released in March 2023, this report exposed GAC's inadequate oversight over the $3.5 billion allocated annually for bilateral aid, highlighting significant lapses in its information management practices. These deficiencies led to incomplete or missing project files, leaving the department unable to accurately assess and report on the actual outcomes of its funded projects relative to their stated goals.
Coastal Front has extensively covered Global Affairs’ spending, including a detailed report on how the department funds organizations involved in sophisticated propaganda campaigns. You can read the full report HERE.
