On Tuesday, Canada’s Finance Minister Chrystia Freeland described the federal government’s latest budget as a responsible fiscal plan, with a point of focus on affordability.
“We needed, in this budget, to find a balance,” Freeland said. “A balance between continuing to invest in Canadians, to invest in affordability for Canadians who are feeling the pinch of inflation right now.”
Tuesday’s budget announcement includes what the Liberals are calling a grocery rebate for lower-income households.
It would be delivered through the existing GST tax credit mechanism, with an estimated 11 million Canadians and families expected to qualify to receive the support.
The one-time rebate is expected to provide $467 directly to an eligible family of four, $234 to a single Canadian without kids and $225 to the average senior.
“While every little bit helps, we are actually quite disappointed to see that this is the solution that’s being put forward to address the major food security crisis that we’re experiencing right now,” said Danielle McIntyre, executive director at the Interfaith Food Bank Society of Lethbridge.
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According to McIntyre, the rebate for single Canadians only amounts to around two weeks of food.
As southern Alberta food banks continue seeing more clients, McIntyre wants long-term support addressing affordability issues.
“There’s just not enough resources going into helping people be able to afford their own food and basic needs moving forward,” McIntyre said.
One political expert is referring to the budget as being “all over the map,” adding it has to contend with multiple outside forces, including Russia’s invasion of Ukraine, inflation and a possible recession ahead.
“Minor changes here, there and everywhere,” said political sociologist Trevor Harrison. “In some ways, I think they’re hoping for the best that some things are starting to settle down internationally.”
“They’re going to get criticized on the right from Conservatives that it’s not austere enough. It’s going to get criticized on the left that it doesn’t go far enough in terms of helping families, low-income earners,” Harrison said.
“The Liberals probably are going to be, as usual, happy to be somewhere in the middle, taking shots from both sides.”
Meanwhile, local brewers say they’re getting some relief in budget 2023.
It includes capping the federal alcohol excise tax increase at two per cent for one year.
The tax had been set to increase 6.3 per cent on Apr. 1.
“It eases the pressure a little bit. It’s still a tax increase, but it is what it is,” Theoretically Brewing Co. co-owner Kelti Baird said.
In a Tuesday media release, national advocate Beer Canada said it was “grateful” for the cap.
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