The federal Liberal government has focused new spending on priority areas that it believes will strengthen the middle class, create jobs and grow the economy. Front and centre in this approach is the government’s plan to invest $120 billion in infrastructure over the next 10 years. (Albeit with only $11.9 billion allocated for the first five years as issues related to municipal and provincial roles, delivery vehicles, project selection and other questions are resolved. This is a prime time to be reaching out with thought leadership and helping government shape policy in such a way as to effectively lever private investment.)
The government is counting on this funding to deliver results in a number of key areas, including:
Advancing major transit infrastructure projects in provinces, based on ridership levels
Promoting and helping to build a cleaner economy
Modernizing infrastructure to address the impact of climate change, and
Increasing the availability of affordable housing.
Perhaps most importantly, the government is counting on these infrastructure investments to create jobs that can support its stated priority of helping the middle class. In an effort to help bolster its claim to be defenders of the middle class, the 2016 Budget also re-announced steps that the government has already taken to reduce personal income tax levels for those in the middle class, while increasing income tax levels for those making more than $200,000 per year.
The government has also made it clear that funding for First Nations and Indigenous communities is a priority by committing $8.4 billion over five years. Almost half of these funds will go towards improving schools and education on reserves, with water and energy infrastructure also noted as priorities.
Finally, the federal government has chosen to replace the various existing programs and tax credits that benefitted families with a new Canada Child Benefit, which the government claims will provide the vast majority of Canadians with more generous benefits, and address poverty reduction efforts.