Billions for home building back-loaded, deficit projected at $40B in 2023-24: fall economic statement

The federal government's fiscal update presented by Deputy Prime Minister and Finance Minister Chrystia Freeland on Tuesday includes billions of dollars in new spending and targeted policy measures aimed at increasing Canada's housing supply in the years ahead.

The federal government's fall economic statement presented by Deputy Prime Minister and Finance Minister Chrystia Freeland on Tuesday includes billions of dollars in new spending and targeted policy measures aimed at increasing Canada's housing supply in the years ahead, with the deficit projected to be $40 billion in 2023-24.

Noting Canadians continue to feel the squeeze of inflation and high interest rates in their everyday lives, while increasingly becoming preoccupied about their looming mortgage renewals, Freeland's fiscal update is focused on responding to two pressing challenges: affordability and accelerating home building, while trying to maintain a degree of fiscal restraint.

As the minority Liberals continue to scale back new spending and try to find billions in savings, Tuesday's economic check-in on the country's finances is, as expected, not a major spending package. The more sizeable financial commitments are not set to roll out the door until 2025, the year of the next scheduled federal election.

Continuing to reduce post-pandemic spending, the 2023 fall economic statement outlines $20.8 billion in additional spending over the next six years, beyond what was announced in the 2023 federal budget.

This includes an estimated $15.7 billion in new measures announced Tuesday and will be offset by a projected $2.5 billion in public sector reduction-centric savings, seeing net new spending work out to $13.2 billion, according to finance officials.

And, in an effort to signal ways the Liberals plan to support Canadians without further dipping into their pockets, the 131-page document also includes a series of cost-free policy and legislative pledges, including bringing forward a bill to create a new Department of Housing, Infrastructure and Communities.

Broadly, Freeland has announced Canada will be putting billions into building new homes, increasing the number of construction workers, cracking down on short-term rentals and grocery competition, as well as rolling out anticipated green investment tax credits.