The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, delivered Budget 2022 - A Plan to Grow Our Economy and Make Life More Affordable (Budget 2022) on April 7, 2022—the first federal budget since the 2021 federal election and the second since the Covid-19 pandemic began. Budget 2022 is influenced by a range of factors, including the Liberal government’s spending promises from the election and new spending promises made through their coalition with the NDP, the need to balance pandemic relief spending, a redoubled focus on addressing climate change, and ongoing global economic uncertainty triggered by the invasion of Ukraine.
National Tax Leader Tara Benham highlights the following measures from Budget 2022 in the video below:
- Affordable housing
- Financial institution taxes
- Small business deductions
Budget 2022 is centered around three pillars:
The Canadian people
Budget 2022 proposes several measures designed to help stabilize the housing market, address housing supply, and make it easier to save and invest in housing. It also looks to build our workforce by making it easier to attract foreign skilled workers and making child care cheaper and more accessible.
Budget 2022 builds on a pattern of past budget measures to make green investment more tax-efficient, to make pollution more costly, and to mandate minimum supply thresholds of zero-emission vehicles while reaffirming the government’s commitment to achieving net-zero by 2050.
Productivity and innovation
Budget 2022 announces two significant new initiatives designed to drive economic growth and innovation.
- The creation of a new Canada Growth Fund – a $15 billion arm’s-length public investment fund designed to invest in Canadian business and industry, while attracting significant private sector investment.
- The creation of a new Canadian Innovation and Investment Agency, an operationally independent agency whose mandate is to help Canadian businesses make investments in new technologies and innovations that will drive growth.
In addition, Budget 2022 provides significant new spending commitments to National Defense of $8 billion over five years, Indigenous reconciliation of $11 billion over six years, and $5.3 billion over five years for a national dental care program.
Visit the 2022 Federal Budget hub to get the latest information and analysis on this year's federal budget.
Have questions? Contact your local business advisor.