Budget 2019: Pre-alert
Making sense of what's next
Budget 2019 sees the current federal government providing its last budgetary update prior to the election expected to occur later this year. This timing provides the government with an opportunity to set priorities for their upcoming campaign and potentially push through any remaining policy changes from its current mandate.
In thinking about the changes we may see in this budget, it is helpful to first take note of Canada's current landscape.
From an economic standpoint, Canada is performing well but there is evidence that this growth is beginning to slow. Based on projections included in the federal government’s Fall Economic Statement, Canada is expected to see 1.8 percent annual growth in its real gross domestic product (GDP) over the next five years, which is less than the 3.0 percent growth we saw in 2017.
Increasing Canadian competitiveness has been a major topic over the past year since the onset of the large-scale tax reform in the United States at the end of 2017.
The desire to facilitate trade and increase Canada’s competitiveness internationally was a major focus of the federal government’s 2018 Fall Economic Statement and it is expected that this trend will continue to influence government policy in the upcoming federal budget.
Recent trade agreements
The government’s focus on trade has been evidenced by the multiple trade agreements that Canada has recently entered into.
- The Canada-United States-Mexico Agreement (CUSMA)
- The Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP)
A critical component to enhancing Canadian competitiveness is fostering innovation. Studies have shown that supporting innovation and entrepreneurs can lead to sustainable growth and prosperity for the country and economy as a whole.
It has been noted that two of the greatest challenges faced by startups are accessing capital and attracting talent. To address these challenges, significant funding has been allocated towards supporting innovation within Canada over the past couple years.
The federal government’s 2017 budget introduced the Innovation Superclusters Initiative.
In today’s world of economic uncertainty, we are hoping to see Budget 2019 address some of the challenges faced by business owners.
Visit Budget 2019 to get the latest information and analysis on provincial and federal budgets.