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Finance Minister Bill Morneau tabled his second Federal budget this afternoon titled “Building a Strong Middle Class”.
It provides a glimpse of the government’s spending for new investments ranging from social housing to child care. The budget forecasts a deficit for the coming year of $28.5 billion, up $3 billion from what was projected last fall and nearly three times the $10 billion limit the Liberals promised in their campaign.
One of the biggest highlights includes $11.2 billion over 11 years to provide various housing measures. That includes over $3 billion to provinces and territories to build new units, fix existing ones and offer rent subsidies.
The budget also extends parental leave to 18 months by spreading 12 months worth of payments over that time and letting expecting mothers claim maternity benefits up to 12 weeks before their due date. The Liberals also announced $7 billion over the next 10 years for new child care spaces.
Other noteworthy changes, a transit tax credit brought in by the previous Conservative government has been scrapped which could cost commuters hundreds of dollars a year.
Ride-sharing’s free ride when it comes to HST and GST rules is officially over. The definition of a taxi business is being amended so it will include ride-sharing services, like Uber, as of July 1st.
There are also new taxes on tobacco products and alcohol. You can expect a 53 cent increase on the cost of a carton of cigarettes, a 5 cent increase on a 24 pack of beer, and a 1 cent increase on each litre of wine.
The opposition parties were not thrilled with the budget details. Interim Conservative Leader Rona Ambrose says the Liberals have a spending problem, while NDP leader Tom Mulcair says rich Canadians are getting what they want but regular Canadians aren’t getting what they need.
