In Budget 2023, Liberals eye inflation relief ‘without having to write a big cheque’

Finance Minister Chrystia Freeland unveiled the second budget of the Liberals’ current minority mandate on Tuesday and put the focus on both reining in spending.

The 2023 federal budget sees the Liberal government shift its tact amid an uncertainty economy and Canadians in need of inflation relief, looking to save money in the near term with cost-free measures that flex its influence on areas where it can make a tangible impact.

Finance Minister Chrystia Freeland unveiled the second budget of the Liberals’ current minority mandate on Tuesday and put the focus on both reining in spending while supporting Canadians who have been hit hard by high inflation and rising interest rates.

“Our most vulnerable friends and neighbours are still feeling the bite of higher prices,” she said in a speech to Parliament on Tuesday afternoon, according to her prepared remarks.

“And that is why our budget delivers targeted inflation relief to those who need it most.”

The biggest line item on the affordability front is $2.5 billion in spending for a so-called “grocery rebate” aimed at lower-income households, as reported by Global News and others ahead of Tuesday’s budget release.

The one-time rebate is expected to deliver $467 directly to a family of four, $234 to a single Canadian without kids and $225 to the average senior.

An estimated 11 million Canadian households are expected to receive the boost via the GST tax credit mechanism, and it does not have to be spent on groceries.

Other measures announced in the 2023 budget without costs attached are a plan to crackdown on so-called “junk fees” attached to concert tickets or baggage costs, for example, as well as plans to move towards an automatic tax filing system to ensure low-income Canadians take advantage of already available rebates.