Achi news desk-
Ottawa’s latest budget is getting mixed reviews across Alberta, with many questioning how the proposed reforms will actually solve the country’s housing crisis.
On Tuesday, the federal Liberal government delivered its 2024 budget with promises to help young Canadians. The proposed $57 billion budget comes amid a stronger-than-expected economy and new taxes targeted at the wealthiest Canadians.
Much of the new spending was announced well before the budget was presented on Tuesday, including the Canada Renters’ Bill of Rights. Prime Minister Justin Trudeau said in March that the proposed legislation will reform the rental market, including amending the Canada Mortgage Charter to allow tenants to count on-time rent payments toward their credit score, and offering $15 million in new funding to provincial legal aid organisations. protect tenants from unfair rent payments.
The 2024 federal budget also promises to make home buying more accessible to Canadians while also increasing the housing supply. The 2024 budget promises to build 3.87 million new homes by 2031 – two million more than the current expected pace – with a series of measures and funding to speed up the building of new homes.
“We act today to ensure fairness for all generations,” Finance Minister and Deputy Prime Minister Chrystia Freeland said in the House of Commons on Tuesday as she presented the Liberals’ 2024 budget.
“We are moving purposefully to help build more homes faster. We make life cost less. We are driving the kind of economic growth that will ensure that every generation of Canadians can reach their full potential.”
Alberta Finance Minister Nate Horner responded to the budget by saying the federal government is “pouring gasoline on the inflation crisis in Canada” by overspending, overtaxing and overregulating Canadians.
Horner said the “excessive” spending is fueling inflation and will hurt young Canadians by increasing their debt and deficits.
“This federal government has failed to take decisive action on critical issues, such as Canada’s alarmingly slow economic growth and the economic pressures Canadians are experiencing,” Horner said at a news conference Tuesday.
“This budget is another missed opportunity for any of these problems.”
Horner also said that tax increases and red tape will increase costs and further add to the affordability crisis. He pointed to the proposed housing reforms, saying that the regulations associated with federal housing funding will make it difficult to increase the housing supply in Alberta.
“We are seeing increasing intrusion into areas of provincial jurisdiction with bureaucracy and strings attached to any form of funding,” he said.
However, Premier Danielle Smith told Shaye Ganam on QR Calgary on Tuesday morning that she is meeting with federal Housing Minister Sean Fraser to discuss the Housing Accelerator Fund.
Smith said at the United Conservative Party Leaders Dinner on Tuesday that she was concerned about over-taxing, over-spending, over-borrowing and over-intervention in provincial affairs.
“Really, if they stopped trying to tell the states what to do, they’d probably have enough money to take care of their jurisdictional areas,” he said.
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Alberta NDP leader Rachel Notley said in an emailed statement Tuesday that the federal government must deliver on its housing and affordability promises at a time when many Albertans are facing an affordability crisis.
“At a time when Albertans need all governments, regardless of political stripe or jurisdiction, to have their backs, today’s federal budget must deliver on the housing and affordability needs of Albertans,” her statement read.
“Ensuring Albertans can access the first steps of a national pharmaceutical care program, covering diabetes and contraception, is essential to helping them afford the medications they need.
“Building affordable, accessible housing quickly is essential to ensure that everyone in our state has a roof over their heads.
“And crucially, investments into our province from their own tax dollars must flow without interference from the province’s Chief Ranger. The Premier should be seizing the opportunities to invest in Alberta instead of standing in the way of these important investments.”
The mayors of Calgary, Edmonton respond
Edmonton Mayor Amarjeet Sohi said in a social media post Monday that the 2024 federal budget reflects the priorities Edmontonians have asked the city to focus on. Sohi said this includes funding for public safety, housing assistance and economic development.
In a letter to federal Finance Minister Chrystia Freeland in January, Sohi requested $300 million in capital investment and $25 million in annual operating funding to support Indigenous-led housing. He also requested an immediate $54 million in federal funding to develop 207 new “shovel-ready” affordable housing units, most of which would support people with complex mental health and addiction challenges.
Sohi also asked for $200 million over four years to “leverage private investments in residential development” and adapt underutilized office space in downtown Edmonton. He also requested $358.4 million in capital funding to support the redevelopment of downtown Edmonton.
“The City of Edmonton’s 2024 federal budget submission reflects the priorities that Edmontonians have asked us, as their elected representatives, to focus on: public safety, housing assistance, and economic development,” Sohi’s post on social media read.
“I am hopeful that the federal budget can provide resources to support Edmonton’s growing population, and these resources can flow to Edmonton without undue delay.”
Calgary Mayor Jyoti Gondek told reporters Tuesday that the budget appears to be focused on housing and the federal government appears to be investing in infrastructure needed to grow existing communities.
However, she is disappointed that there is no mention of a permanent solution to how the federal government funds municipalities, which was a big request from Calgary.
“I would really like to see some kind (of) a process where states and municipalities can engage with the federal government to find a permanent funding solution,” Gondek said.
Calgary’s mayor said she is pleased the federal government is unlocking five parcels of federal land to lease to housing providers. That includes Currie, a community in southwest Calgary, and an estimated 100 homes will be built in that area.
“Any units we can build will benefit Calgarians,” he said.
“My concern is that although we focus on the 60 people who move here every day and make sure we have enough housing for all of them, there are people here who get trouble with affordability and housing. We need to ensure that this federal government focuses on everyone. “
Canadian Taxpayers Federation slams nearly $40M deficit
Kris Sims, Alberta director for the Canadian Taxpayers Federation (CTF), slammed the Trudeau government’s budget for raising taxes and increasing spending. Sims told Sarah Crosbie on QR Calgary Monday afternoon that debt interest payments will skyrocket as a result of the budget. According to a news release from the CYP, debt interest payments will cost taxpayers $54 billion in 2024.
The organization also criticized the federal government’s projected deficit of $39.8 billion.
“It’s a dumpster fire really,” Sims said.
“We are now paying more than $1 billion a week on the interest payments on the debt. More clearly, we are now spending more on our interest payments on our debt than we are on health care in Canada.
“They have no plan to balance the budget. Not this year, not next year, not the year after that… So this is why we are pulling our hair out, because they have no financial discipline, and we can all sit here and point fingers at them and say they are being very terrible with our money.”
Sims also said the 2024 federal budget will not solve the housing affordability crisis in Canada because the Liberal government has raised interest rates. She said she wants the Trudeau government to lower taxes which will increase construction supply and lower housing prices.
“Prime Minister Justin Trudeau’s government has printed about $300 billion out of thin air. That is what causes inflation. When we have inflation rising to this level, that is, we see the interest rate rise. So that’s one of the fundamental reasons why housing is out of reach,” says Sims.
“We’re no closer to having an affordable home in Canada, and I want to afford homes too. Everyone should.”
Sims added that he doesn’t know if Ottawa’s proposed changes to its capital gains taxes will be productive.
The federal government proposed changes to capital gains taxes in Budget 2024, which could see the wealthiest Canadians pay a larger share of their earnings.
Under the proposal, annual earnings over $250,000 for individuals would be taxed at a rate of two-thirds, up from the current 50 percent. Any earnings below that bar would continue to be taxed at the 50 per cent rate.
“We don’t have enough of them to fund our federal budget… Even if we did, the parliament budget officer did the math back in 2021 and based on the wealth tax they were floating back then but without doing that, the Trudeau government they would spend the money they take in a month,” Sims said.
“This is where we say there aren’t enough super uber rich duper richie people to keep up with this kind of spending. It’s always going to trickle down and nail the rest of us.”
— with files from Craig Lord, Global News.
