2019 Federal Budget

The 2019 Federal Budget highlights:

1. 2018-19 deficit projection: $14.9 billion, down slightly from the fall.
2. 2019-20 deficit projection: $19.8 billion, with $3 billion risk adjustment.
3. Debt: $685.6 billion, projected to rise to $761.7B by 2023-24.
4. Debt-to-GDP ratio: Projected to be 30.8 per cent, falling to 28.6 per cent by 2023-24
5. $22.8 billion in new spending over the next five years:
   1. $6 billion for research in health and science
   2. $4.7 billion in new money for Indigenous communities, including for settling land claims; “governance support”; improving child welfare services; promoting Indigenous languages; and improving health and safety in communities.
   3. $3.9 billion in compensation for supply-managed farmers who are losing a share of the dairy, egg and poultry market after two trade deals entered into force: the Comprehensive Economic and Trade Agreement with the European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with Japan, Australia, New Zealand and seven other countries in the Asia-Pacific.
   4. $1 billion to increase affordability of high-cost drugs for rare diseases, plus the creation of a new Canadian Drug Agency to negotiate prescription drug prices “on behalf of Canadians

Individuals Highlights:

1. A new First-Time Home Buyer Incentive introduced in Budget 2019 aims to reduce the amount first-time buyers have to pay for a mortgage without increasing the required down payment
2. The Home Buyers’ Plan (HBP) withdrawal limit will increase from $25,000 to $35,000 starting March 19, 2019.
3. The Canada Training Credit will let Canadians aged 25 to 64 accumulate $250 a year (to a maximum of $5,000, meaning $1,000 every four years) to put towards training fees, college, university, and other eligible institutions providing occupational skills, starting in 2020.
4. The EI Training Support benefit provides four weeks of income support (55 per cent of a person’s average weekly earnings) every four years so that workers can take time off to go to school or train in some way.
5. The federal government is lowering the interest rates on Canada Student Loans and Canada Apprentice Loans.
6. There will no longer be interest charged during thesix-month grace period that students receive before they must start repaying their Canada Student Loans.
7. A credit of up to $5,000 for purchase of electric vehicles
8. and more…

2019 Federal Budget Plan

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