Budget 2022 unveils billions in 'targeted' new spending, deficit projected at $52.8B
CTV
In the 2022 federal budget, the government is unveiling $60 billion in new spending over the next five years, aimed at 'targeted' initiatives to build the economy, while continuing to chip away at the deficit. From addressing housing affordability, to shoring up the Canadian military in the face of global instability, and making good on progressive policy commitments helping to keep them in power, the budget outlines how the federal Liberals propose to steer the Canadian economy.
From addressing housing affordability, to shoring up the Canadian military in the face of global instability due to Russia’s war in Ukraine, and making good on progressive policy commitments helping to keep them in power, Thursday’s federal budget from Deputy Prime Minister and Finance Minister Chrystia Freeland outlines how the federal Liberals propose to steer the Canadian economy through persistent inflation, while moving away from pandemic-era massive stimulus spending.
The budget proposes $9.5 billion in net new spending for the 2022-23 fiscal year—with the biggest ticket items focused on housing supply, Indigenous reconciliation, addressing climate change, and national defence—while also set to take in more than $2 billion in revenue-generating efforts.
The total new spending outlined in the 2022 federal budget adds up to more than $60 billion, though the net new spending is much less—approximately $29 billion— after factoring in plans to rake in tens of billions in new revenue by targeting banks and other profiteers to help pay down Canada’s debt.
The budget— titled “A Plan to Grow Our Economy and Make Life More Affordable”— shows that the federal deficit is projected to sit at $113.8 billion for fiscal year 2021-22, down from the $144.5B estimated in the latest fiscal update. In years following, the deficit is also set to be reduced from past projections, with the 2022-23 deficit estimated at $52.8 billion, and declining each year following, to $8.4 billion by 2026-27.
