Federal & BC 2023 Budget Commentary

2023 Federal Budget Commentary

Canada’s Finance Minister, the Honourable Chrystia Freeland, tabled the 2023 federal budget on March 28, 2023.

Canada’s economy is now 103% the size it was before the pandemic, marking the fastest recovery of the last four recessions, and the second strongest recovery in the G7. The unemployment rate is near its record low and Canada’s economic growth was the strongest in the G7 over the last year. At the same time, many Canadians continue to face affordability challenges and inflation remains elevated.

Budget 2023 forecasts a deficit of $43 billion for 2022/23, decreasing each year to $14 billion in 2027/28. The federal debt-to-GDP ratio is expected to rise from 42.4% in 2022/23 to 43.5% in 2023/24, before declining to 39.9% in 2027/28.

From a tax perspective, there were no changes to personal or corporate tax rates. The budget did include a new grocery rebate, changes to Registered Education Savings Plan withdrawal limits, an updated alternative minimum tax regime for high-income individuals, and strengthened intergenerational business transfer rules.

The full summary of significant tax and program changes announced in the budget can be downloaded below. Please note that the changes are proposals until passed by the federal government.

View 2023 Federal Budget Commentary

2023 BC Budget Commentary

Finance Minister Katrine Conroy tabled the 2023 British Columbia provincial budget on February 28, 2023.

The forecast surplus for the almost completed 2022/23 fiscal year is anticipated to be $3.6 billion, compared to the original projected budgeted deficit of $5.5 billion. The budget projects declining deficits of $4.2 billion for 2023/24, $3.8 billion in 2024/25 and $3.0 billion in 2025/26 fiscal years.

There were no increases or decreases to personal or corporate income tax rates for 2023. However, the budget introduces a new renter’s tax credit, steady increases to the carbon tax and an enhancement to the climate action tax credit.

The full summary of the changes announced in the budget can be downloaded below. Please note that these changes are proposals until passed into law by the provincial government.

View 2023 BC Budget Commentary

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