Push to spur investment overshadows affordability moves: economist
From a grocery benefit expansion to rental assistance and payments for more low-wage workers, Thursday's federal budget includes a number of measures aimed at making life more affordable.
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life → spur → measures
But they were still eclipsed by a focus on investment.
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they → eclipse → investment
One of the main direct pocketbook measures is a top-up to the Canada Groceries and Essentials Benefit — a pre-existing program that gives quarterly payments to Canadians with low and modest incomes.
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that → give → incomes
The top-up will increase those payments by 50 per cent for the 2026-27 program year.
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up → increase → year
Combined with previous increases, a single person could get up to $1,290.
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person → combine → 1,290
A couple with two children could get up to $2,570.
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couple → get → 2,570
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The government says the program will give Canadians collectively $4.1 billion more in support to help pay for essentials.
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program → earmark → essentials
More low-income workers will also get benefit payments to help them make ends meet.
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ends → get → payments
Those who make a minimum of $3,000 annually get a refundable tax credit under the Canada Workers Benefit, but that threshold is being lowered to $500 for all workers.
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threshold → make → workers
The budget also increases those credits slightly, to $1,859 for single individuals who don't have kids and $3,143 for families.
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who → increase → families
Other measures aimed at bringing down costs were already announced.
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measures → aim → costs
The government suspended the excise tax on fuel — which saves Canadians about 10 cents a litre on the cost of gasoline — in April, and later extended that to the end of January 2027.
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which → suspend → January
The tax will come back at a 50 per cent rate until the end of March 2027 and then return to its regular level.
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tax → come → level
In all, the budget shows the government spending $5.3 billion on that relief at the pumps.
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government → show → pumps
Overall, the federal government's fiscal plan pledges $22 billion for new spending on affordability measures.
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plan → pledge → measures
But aside from that direct spending on things like groceries and gas — measures that will support Canadians in the short term — economist Armine Yalnizyan says there's little in the budget for everyday people.
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Yalnizyan → support → people
"It's not like they're doing nothing," Yalnizyan said.
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Yalnizyan → do → nothing
"But the short answer is Canadians are going to need a lot of patience because this budget is not there to support them."
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budget → go → them
The biggest-ticket spending on affordability is related to housing, with $11.2 billion dedicated to ending homelessness within 10 years.
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billion → relate → years
That money would help build supportive and transitional housing and provide support to facilities that care for people in a mental health or substance abuse crisis.
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that → help → crisis
To help low-income renters, the government is also renewing the Canada Housing Benefit for 10 years to support Canadians with direct monthly rental assistance, to the tune of $1.7 billion starting in the 2028-29 fiscal year.
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government → help → year
Yalnizyan said the pledge to end homelessness is a welcome one — as is the commitment to extend the ban on foreign purchases of rental properties to January 2026.
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commitment → say → January
But the housing benefit doesn't go far enough, she says, and the money to fund new housing projects won't benefit Canadians for years to come.
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money → go → years
The federal budget pledged $11.2 billion to end homelessness, as well as more money to build non-market housing and regular homes.
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budget → pledge → housing
"There is money there for it but it's not coming through fast enough," Yalnizyan said.
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Yalnizyan → be → it
"There's too much wait and see, come and talk to us later," Yalnizyan said.
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Yalnizyan → be → us
Those affordability measures are also eclipsed by tax cuts and investments in infrastructure and other major projects.
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measures → eclipse → infrastructure
The previously announced productivity mega-deduction alone accounts for $36 billion worth of spending, compared to $22 billion overall for affordability.
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deduction → announce → affordability
Rather than boosting everyday Canadians, Yalnizyan says the budget is focused on catalyzing investment and attracting new spending within Canada.
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budget → boost → Canada
"It's not a bad budget for all of that, but they've left out the people," Yalnizyan said.
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Yalnizyan → leave → people
The Aporia
