Liberals Delay Federal Budget, Focus First on Middle-Class Tax Cut
The federal government will not release a full budget before Parliament breaks for the summer, Finance Minister François-Philippe Champagne said on Wednesday. This decision has led to criticism from opposition parties, who say the government lacks a clear plan.
Instead of a budget, the Liberal government is focusing on delivering a tax cut for the middle class by July 1. Champagne said this is the government’s top priority.
“That’s step one,” he told reporters after a cabinet meeting in Ottawa. “Step two is a throne speech to explain the government’s goals, and then we’ll release an economic update in the fall.”
The tax cut will be introduced on May 26, when Parliament returns. It will lower the lowest tax rate from 15% to 14%, helping people who earn up to $57,375 a year. For two-income households, this could save over $800.
Finance Minister Champagne said this shows the Liberals are listening to Canadians’ concerns about the cost of living. “This sends a clear message that we care about affordability,” he said.
Prime Minister Mark Carney, who signed the order for the tax cut, said the government is acting now to make life more affordable and to grow the economy.
The Liberals currently have a minority government, so they will need support from other parties to pass the tax cut. Champagne said he hopes all MPs will support it, as it helps Canadians who are struggling.
However, Conservative Leader Pierre Poilievre and interim NDP Leader Don Davies are unhappy that there won’t be a full budget yet. Poilievre said there is “no plan and no leadership,” while Davies argued that Parliament needs to see how the government will spend money, especially during tough economic times.
A major event, the Speech from the Throne, will take place on May 27. King Charles III will read it to explain the government’s future plans. After that, MPs will debate and vote on the speech, which acts as a confidence vote. If the government loses, it could lead to an election.
Opposition parties have not said whether they will support the tax cut. Poilievre also promised tax cuts during the election campaign, but it’s not clear if his party will vote for the Liberals’ plan.
Carney’s government also announced new cabinet committees. One will focus on planning and priorities, another on strengthening Canada’s economy, and a third on cutting government spending. A fourth committee will deal with protecting Canada’s security and handling international relations.
