A senior government official told CBC News that the federal budget that will be unveiled on Tuesday will include a grocery rebate measure designed to address rising food costs for lower-income families.
According to the source who asked not to be named as they are not authorized to publicly speak about the matter, the measure will be a one-time payment facilitated through the GST credit. It will benefit 11 million households, with a total cost “north of $2 billion.”
The person said that the measure is currently being called a ‘grocery rebate’ but it will not be based on a household’s grocery expense, and recipients will not be required to spend the money on groceries. A single person with no children could receive a one-time ‘grocery rebate’ of up to $234. A couple with two children could receive up to $467, and a senior citizen about $225.
Finance Minister Chrystia Freeland earlier said that the federal budget will feature targeted measures to help those who are most affected by the affordability crisis due to rising interest rates and inflation.
“For those Canadians who feel the bite of rising prices the most acutely, for our most vulnerable friends and neighbors, our government will deliver additional targeted inflation relief,” the minister said in Oshawa last week.
“This support will be narrowly focused and fiscally responsible. The truth is we can’t fully compensate every single Canadian for all of the effects of inflation or for elevated interest rates. To do so would only make inflation worse and force rates higher for longer.”
CBC News also confirmed that the government will work on eliminating junk fees, or those hidden or unexpected fees attached to the initial price of goods or services. The federal government will enlist the help of regulatory agencies as well as provinces and territories to remove these fees. The source said that sectors that can expect to be affected are phone and internet providers as well as large event ticket sellers.
The source was not able to give details on how the budget will address healthcare, one of the most urgent concerns of the average Canadian. But there will be investments in clean industrial economy akin to the Biden administration’s Inflation Reduction Act. The budget will include a significant tax credit for clean tech manufacturing — reportedly 30% of the capital investment costs in manufacturing equipment.
Information for this briefing was found via CBC News, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.