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Canadian Budget: Watch for RESP Increase, Dental Care, Payday Loan Regulation

Published 2023-03-28, 03:49 p/m
© Reuters.

By Ketki Saxea

Investing.com – Finance Minister Chrystia Freeland is set to table the 2023 Canadian federal budget in the House of Commons.

Here are the expected priorities that have been more or less confirmed by officials in recent days, and which are likely to be outlined today.

Regulatory Changes around Predatory Lending

As per a government official granted anonymity, the Federal Government intends to amend the Criminal Code to lower the amount of interest legally allowed to be charged.

Reportedly, the 2023 budget will propose the criminal interest rate be lowered to 35%, the level it currently is in Quebec, which has helped limit “payday loan” options in the province.

Dental Care Plan

The budget is also expected to offer more details on the dental-care plan for low income Canadians, agreed last year in the Liberal’s confidence-and-supply agreement with the New Democrats Party.

The NDP- Liberal deal stipulated dental care to those who are under the age of 18, seniors or people with disabilities in low-income households by the end of this year. NDP Leader Jagmeet Singh has noted that he expects this spending to be outlined in today’s budget.

Grocery Rebate

A senior government official has noted that the budget will include a grocery rebate that will help lower-income Canadians struggling with rising food prices.

A couple with two children would get a one-time payment of up to $467, a senior would get a one-time payment of $225, and a single person would get a one-time payment of $234 in the form of a GST credit.

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The measure is expected to cost upwards of $2 billion and support close to 11 million households.

RESP Increase

The budget is also expected to increase the withdrawal limit for a registered education savings plan from $5,000 to $8,000.

Clean Tech Tax Rebates

Spending and tax rebates for the clean tech sector are expected to dominate the budget.

Finance minister Chrystia Freeland has previously promised investment tax credits for hydrogen production, renewable electricity like solar and wind power, heat pumps and industrial electric vehicles. An official has confirmed that the tax rebates for the sector are expected to be “significant”.

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