2022 Federal Budget:  Key Highlights

  • $56 Billion in new spending is proposed over the next six years

  • The ratio of federal debt to GDP is projected to decline to 41.5% in 2026/27, down from more than 45% currently

  • $5.3 Billion for national dental program for low-income Canadians, including children and seniors

  • $10 Billion ear-marked to make housing more affordable with support for Canada Mortgage and Housing Corporation, affordable housing units, renovation tax credits and a tax-free first home savings account

  • $7.5 Billion for climate initiatives like greener buildings and neighbourhoods, electric vehicle mandates, charging infrastructure, and credits for investments in “green technology” to reach net-zero emissions by 2050

  • $6.1 Billion dedicated to increased defense spending

  • $10.6 Billion to support reconciliation with Indigenous peoples and provide health, social and educational services to First Nations youth, water treatment and housing

  • Corporate income tax raised from 15% to 16.5%, a surtax on banking profits over $1 Billion for the 2021 tax year, and 18% tax rate on profits over $1 Billion

  • Phasing out of the small business tax rate and introduction of a dedicated trust vehicle to encourage employee ownership at small businesses

Morton Financial Group is a full service, independent financial planning firm based in Pictou County, Nova Scotia.