'Targeted inflation relief' coming in 2023 federal budget, Freeland says

The coming 2023 federal budget will 'exercise fiscal restraint' while also making 'significant' investments in health and building Canada's clean economy, Deputy Prime Minister and Finance Minister Chrystia Freeland said Monday.

The coming 2023 federal budget will "exercise fiscal restraint" while also making "significant" investments in Canada's health-care system and building a clean economy, Deputy Prime Minister and Finance Minister Chrystia Freeland said Monday.

In a speech detailing the Liberal government's priorities ahead of next week's budget release, Freeland said the budget will include "targeted inflation relief" to help Canadians who are most acutely feeling the pinch as a result of rising prices.

This echoed Prime Minister Justin Trudeau's commitment last week that the massive fiscal document being tabled will include affordability measures meant to "directly help Canadians."

Though, with the federal government remaining mindful of the need to not pour fuel on the fire of inflation, Freeland is vowing to "exercise fiscal restraint."

"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," Freeland said. "To do so would only make inflation worse and force rates higher, for longer." 

Addressing the state of the Canadian economy, the finance minister touted Canada's near-record low unemployment rate post-COVID-19 recession, but admitted that inflation is "still too high."

She said that higher interest rates are having their intended impact of slowing the economy down, however that means the federal government's revenues are lower, and no longer in a place where the massive pandemic-era support programs can be sustained.