Discussions about money are seldom pleasant and examining the latest federal budget may feel uncomfortable for many. The budget for 2023-2024 was presented by Minister of Finance Chrystia Freeland on Tuesday, March 28.
There is a lot of money in this budget. The total comes to $491 billion, and for the coming year, it includes $8 billion in new spending.
For the next five years, the federal government is planning to have $59.5 billion in new spending.
At the same time, in the coming years, the federal deficit is expected to decrease from $43 billion now to $14 billion by 2027-2028 year.
The 2023-2024 federal budget has a focus on the clean economic transition, health care and cost-of-living relief. In addition, the federal government is continuing to fund existing services and infrastructure.
The new spending is welcome, but at the same time, there is a cost in providing federally-funded services and initiatives to the population. The costs of the $491 billion budget are borne by taxpayers.
To understand the size of the budget, consider Canada’s population of 37 million, shown in the 2021 census. If the cost of this federal budget were to be distributed evenly among all Canadians, it would work out to $13,270 per person.
The high dollar values in the budget become more concerning when one considers the effects of high inflation and a slowing economy. It would be easy to suggest the federal government should simply tighten its belt or make some cuts in order to lower the budget. However, cuts by themselves could have some far-reaching consequences.
Trimming any category within the budget will eventually affect the level of public services or the amount of assistance available to help those in need.
As for simply tightening the belt or trimming the fat from the budget, governments at all levels in this country already watch the numbers carefully. Every budget is scrutinized, not only by elected officials but also by the public as a whole.
The budget figures can be overwhelming. At the same time, simply calling for cuts is not necessarily the wisest way to address the costs of running federal programs.
— Black Press