Freeland's budget expected to focus on green investments, helping the vulnerable

Finance Minister Chrystia Freeland is expected to deliver a budget Tuesday that will offer limited cost-of-living relief to the vulnerable and promote green investments as uncertainty continues to cloud the economic horizon.

"I don't think people should get their hopes up too high at this being a sort of goodie bag budget," Elliot Hughes, former deputy director of policy for former finance minister Bill Morneau, told CBC News.

"It certainly is not being spoken about in that way by both the prime minister and the finance minister and if anything, they've I think been … really leaning into the fiscal restraint piece for this budget."

Freeland has warned Canadians that while the budget will offer investments in green energy to address the U.S. Inflation Reduction Act, and targeted relief for those struggling with inflation and high interest rates, the cupboard is nearly bare.

"The truth is we can't fully compensate every single Canadian for all of the effects of inflation or for elevated interest rates. To do so would only make inflation worse and force rates higher for longer," she said last week. 

Hughes said that while the Liberals want to use the budget to seize control of the political narrative for the coming year, that will be difficult with the economy uncertain and no federal election on the horizon.

"It is always tough to seize the narrative by saying we need to … be as boring as possible," he said. "That said, there are going to be some good measures in here."

Last year, under pressure from the NDP, the Liberal government doubled the GST tax credit for six months. Singles without children got up to $234 more from the credit, couples with children got up to $467 and seniors got an average boost of $225.

NDP Leader Jagmeet Singh has said he wants the budget to turn that one-time payment into at least a two-time payment. It looks like he's going to get his wish.

CBC News reported Monday that while the program is being rebranded as a rebate on groceries, the Liberal government will be rolling it out again at a cost of $2 billion.

The move comes as the cost of food continues to rise year over year despite the fact that overall inflation has been easing for months now. 

The budget also is expected to expand beyond children under age 12 the national dental care plan for low-income families and individuals.

The deal between the Liberals and the NDP that guarantees New Democrat support on confidence votes in the House of Commons requires that the Liberals expand the dental care program each year.

In 2023, the program is set to expand to cover Canadians under 18, seniors and those living with a disability. The program is to be fully implemented by 2025.