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What You Should Know About the 2023 Federal Budget

April 12, 2023

3-minute read
Written by: Jamil Ahmed, Policy & Research Analyst

The Government of Canada announced its Budget: A Made-In-Canada Plan on March 28, 2023. Federal budget 2023 emphasizes Canadians’ affordability, healthcare spending, investment in a clean economy and energy, employment and growth, and transition to a green economy.

Budget Forecasts:

  • Total revenue for 2023-24 is projected to be $456.8 billion.
  • Total expenditure for 2023-24 is expected to be $490.5 billion.
  • The budget deficit for 2023-24 is projected to be $40.1 billion.
  • The projected GDP growth rate for 2023 is 0.3%.
  • The cumulative deficit is $69 billion more than what was indicated in the fall statement. The deficits are expected to total nearly $118 billion over the next four years.

We have summarized some of the highlights below that will impact the Winnipeg business community: 

  • The government is introducing a refundable Investment Tax Credit for clean hydrogen, effective for equipment purchased and installed between March 27, 2023, and before 2034.
  • The Clean Tech Investment Tax Credit is a 30% refundable tax credit available to businesses investing in eligible property used primarily for generating electricity and/or heat solely from geothermal energy.
  • A refundable Investment Tax Credit of 30% of the capital cost of eligible property will be linked with eligible operations for clean technology manufacturing and processing.
  • At least $20 billion in Clean Energy Investment Tax Credits will be made available through the Canadian Infrastructure Bank to promote the construction of large clean energy and clean growth infrastructure projects.
  • Formation of a National Supply Chain Strategy to strengthen the domestic transportation system and supply chain infrastructure.
  • During a five-year period, $27.2 million will be spent to construct a Transportation Supply Chain Office, and $25 million will be spent to produce Transportation Supply Chain Data.
  • There are commitments from Visa and Mastercard to lower credit card transaction fees for small businesses while safeguarding reward points supplied by major banks to Canadian customers. 
  • Introduce tax adjustments to assist the formation of Employee Ownership Trusts.
  • A top-up of $625 million will be invested in Labour Market Transfer Agreements, supporting various services such as skills training, on-site work experience, career counselling, and job search aid.
  • $4 billion investment in Indigenous housing, consulting on regulatory barriers, and launching a Tax-Free First Home Savings Account to help Canadians save for their first home.
  • Amendments to the Canada Labour Code to ban the use of replacement workers during a strike or lockout and improve public health and safety during a work stoppage.

Check out the Canadian Chamber of Commerce’s detailed analysis HERE.

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