Roundup: The Budget 2023 highlight reel

Posted on by

And with that, Budget 2023 is now out in the wild. It’s much more pessimistic than the fall economic update was, reflecting the softening global economy—even before the current spate of bank problems happening in the US and Europe. And because GDP growth is projected to be virtually non-existent next year, while spending is increasing, it does mean the debt-to-GDP ratio is going to climb a tiny bit higher than projected earlier, causing no end of grief to a certain class of economic watcher.

The common refrain I heard from the television panellists in reaction was that the budget was clearly defined by its co-authors—Jagmeet Singh, and Joe Biden—each who had their demands, which wound up in the document. In terms of what’s in the budget, here’s an overview, while the highlights include:

  • Rebranding the added GST credit as a one-time “grocery rebate,” while the rental supports are ending because of low uptake.
  • Dental care is planning to be turned into a full insurance programme for the uninsured, administered through Health Canada rather than the CRA.
  • There is money to deal with countering foreign interference, money laundering, and other financial crimes.
  • There are a tonne of subsidies and tax credits geared toward the green economy, with more rewards for companies with better labour practices.
  • The wealthiest Canadians are facing an Alternative Minimum Tax increase.
  • The share buyback tax is in the budget.
  • The excise tax on alcohol is going to cap at a lower rate after a massive outcry (never mind it was adding less than 1¢ to a can of beer).
  • There is more money for consultations on Indigenous resource sharing.
  • They are promising a federal spending review and cutting back on consultants and travel (but we’ll see if that sticks).
  • More money to keep the Phoenix pay system stable while they work on a replacement.
  • There will be a $2.4 billion loan for Ukraine, on top of another $200 million for military equipment (most of which has been announced).
  • Here are sixteen points that are prominent, and that are a little more hidden in the text.

Surprising absolutely nobody, Jagmeet Singh says he’ll support the budget, while Pierre Poilievre put on a big song and dance in the Foyer before Question Period saying that unless the government met his demands, he wouldn’t support it—not that he would support it anyway, so it was the dumbest, hollowest threat imaginable. Honestly. Meanwhile, here is some reaction from business leaders to the document.

https://twitter.com/Dennismolin11/status/1640822353461489664

Ukraine Dispatch:

In spite of the relentless bombardment of Bakhmut and Avdiivka, Ukrainian forces say the Russians have made no advancement on either position (even if the Russians insist they are). The first of the British Challenger 2 tanks have begun arriving on Ukrainian soil, as have Leopard 2 tanks from Germany, while France is pledging more ammunition. President Volodymyr Zelenskyy visited the Sumy region, which was retaken from Russian forces in early April of last year.

https://twitter.com/ukraine_world/status/1640785827210067968

Good reads:

  • Here is a behind-the-scenes look at the changes to the Safe Third Country Agreement, and how and why it was kept secret for nearly a year.
  • The Star has an amazing primer on just what foreign interference is and what it isn’t, and you should all read it.
  • In advance of the Nova Scotia Mass Casualty Commission report, we find that the senior RCMP officers implicated have either retired or moved to new jobs.
  • Susan Delacourt sees a theme in the budget of the government trying to get its back office in order, to head off the “Canada is broken” accusations.
  • Paul Wells remarks on the budget’s move toward trusting the market more than previous budgets have, and the failure of those previous attempts.
  • My column looks at the state of the housing debate federally, and why it’s particularly abysmal on both sides of the aisle.

Odds and ends:

Want more Routine Proceedings? Become a patron and get exclusive new content.