The federal government unveiled an $8.9 billion plan Thursday that aims to tackle rising inflation and put money back into the pockets of Canadians.
Speaking at the Empire Club in Toronto, Ont., Deputy Prime Minister and Finance Minister Chrystia Freeland said rising inflation is one of the many aftershocks created by the pandemic and Russian invasion of Ukraine.
“I understand keenly that millions of Canadians drive a long way to the store and that today, they will wince when they fill up their tank and when they buy their groceries,” said Freeland.
“I know that many of them are asking what their government is going to do about it.”
The measures that make up the Canada Affordability Plan, which was already announced by the feds in this year’s federal budget, include:
- Boosting the Canada Workers Benefit by $1.7 billion in 2022.
- Increasing Old Age Security by 10 per cent, providing up to $766 in new supports.
- Providing a one-time Housing Affordability Payment of $500 for low-income Canadians.
- Bringing child care costs to $10 per day by 2025.
- Free dental coverage for Canadians earning less than $90,000 a year.
- Increasing benefits indexed to inflation, such as the Canada Pension Plan, the Canada Child Benefit and the GST credit.
In the budget, Freeland said she has also committed to a thorough review of government spending after the country spent an “extraordinary amount” of money on pandemic recovery, totalling more than $300 billion.
“There is no such thing as a blank check,” she said.
“Our ability to spend is not infinite. That was true when interest rates were at historic lows in the spring of 2020 and it is most certainly true today.”
Freeland said the pandemic also caused Canada’s worst recession since the Great Depression. She noted its recovery is now the strongest in the G7, noting that Canada has recovered 117 per cent of the jobs lost during the pandemic.
In addition, Freeland said Canada’s inflation sat at 6.8 per cent in April, which she said is significantly lower than other G7 countries. The U.K. currently sits at 9 per cent, Germany at 7.4 per cent and 8.6 per cent in the U.S.
Freeland said no single country can solve rising inflation, but she pledged that Ottawa would take real and tangible steps to get inflation under control and to make life more affordable for Canadians.
“Our plan will help tackle inflation and make life more affordable for Canadians and I’m confident that our plan is the right one,” said Freeland.
