The federal government tabled its 2023 Fall Economic Statement (FES 2023) on November 21, 2023, which was presented by Deputy Prime Minister and Minister of Finance Chrystia Freeland.
FES 2023 focuses on housing and affordability and proposes several new tax measures, including changes to exclude certain Canadians from the Underused Housing Tax (UHT), make short-term rental properties less lucrative, and make certain health care services more affordable.
FES 2023 includes three scenarios for numerous economic indicators: the baseline projection, an upside scenario, and a downside scenario. The upside scenario factors in a faster than expected fall in underlying inflation, while the downside scenario forecasts a shallow recession in Canada factoring in the impacts of persistent inflation.
The following table outlines key economic indicators in all three scenarios:
The projected deficit for 2023-24 is reduced to $40 billion in the baseline projection, is $35.2 billion in the upside scenario, or is increased to $45 billion in the downside scenario, in comparison to a deficit of $40.1 billion projected for the same period in Budget 2023 [ 1526 kb ].
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.