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This afternoon, The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released the 2024 Federal Budget: Fairness for Every Generation. The 2024 federal budget is the government’s plan to build more homes, faster, help make life cost less, and grow the economy in a way that helps every generation get ahead.

Economic Outlook



Canada’s economy continues to show resilience in the face of high interest rates as GDP growth is penciled in at around 3.5% annualized growth for the first quarter of 2024 (7.4% annualized in January, and an estimated 4.9% in February). GDP growth for 2024 is forecasted at 0.7% and 1.9% in 2025. Both the IMF and OECD forecast that Canada will outperform the other G7 countries with regards to economic growth in 2025.

In addition to better-than-expected GDP growth, labour markets were also strong, as employment rose by over 1.1 million since before the pandemic.

Inflation is also making its way to the target, dropping from the peak of 8.1% in June 2022 to about 2.8% in February 2024. However, costs of living remain elevated, particularly for housing and groceries. The Federal Government seeks to balance supporting vulnerable Canadians with fiscal prudence.

Projections show that the budget deficit is expected to be $40 billion in the 2023-2024 fiscal year, and then gradually decrease to approximately $20 billion in 2028-2029. Relative to the other countries, Canada continues to be one of two G7 nations which maintains a AAA rating with 2 of the 3 major credit agencies. Canada is also projected to sustain the lowest net-debt to GDP of the G7, reaching below 1% in 2026-27. 

Economic Growth for Every Generation

Key Ongoing Actions

• Investing nearly $3 billion annually in Canada's Labour Market Development Agreements and Workforce Development Agreements with provinces and territories.
• Supporting a trades workforce that is skilled, inclusive, certified, and productive through the Canadian Apprenticeship Strategy.
• Equipping close to 105,000 Canadian workers with the skills they need by increasing access to union-led training through the Union Training and Innovation Program since 2019-20 and supporting over 45,000 apprentices through interest-free Canada Apprentice Loans since 2018-19.
• Introducing labour requirements for prevailing union wages and apprenticeship opportunities in most major economic investment tax credits to ensure Canadian workers thrive in the growing clean economy.
• Banning the use of replacement workers during a strike or lockout in federally regulated workplaces to protect workers' right to strike and support a fairer collective bargaining process during labour disputes.

Investing in a Strong Workforce for a Strong Economy

• Budget 2024 proposes $10 million over two years to continue to encourage Canadians to explore and prepare for careers in the skilled trades.

Strengthening Canada’s AI Advantage

• The government has invested over $2 billion towards AI in Canada.

Getting Major Projects Done

• Budget announces measures to help clarify and reduce timelines for major projects, so they can get built faster.

Building Homes on Public Lands

• Budget 2024 proposes to provide $4 million over two years, starting in 2024-25, for Canada Lands Company to support new modular housing projects on four sites including Downsview, Toronto in Ontario.
• Also announced, the Apartment Construction Loan Program will earmark at least $500 million to homebuilders that use innovative construction techniques, such as modular housing, for new rental projects.  

Safer, Healthier Communities

Infrastructure for Growing Communities

• Investing $33.5 billion in Canada Infrastructure Program, to support infrastructure projects in every province and territory.
• Public transit programming, including $2.4 billion for the Zero Emission Transit Fund, $400 million for the Active Transportation Fund, and $150 million for the Rural Transit Solutions Fund.
• Under the National Trade Corridors Fund, $4.3 billion, to improve the movement of people and goods in Canada.
• Investing $1.5 billion under the Green and Inclusive Community Buildings program, which supports green and physically accessible retrofits, repairs, and upgrades of existing public community facilities, and the construction of new publicly-accessible community facilities.
• Escalating annual funding through the Canada Community-Building Fund, which provided $2.4 billion in 2023-24 to cities for 19 different infrastructure categories.
• $35 billion to be invested by the Canada Infrastructure Bank in revenue-generating infrastructure projects that are in the public interest across the following sectors: clean power, green infrastructure, public transit, trade and transportation, and broadband. 
• In 2024-25, an estimated $8.3 billion in federal funding will be disbursed across the government's suite of infrastructure programs. Funding will continue to grow over the coming years, with a projected peak of $11.3 billion in 2027-28.
• Budget 2024 proposes to provide $500 million over five years, starting in 2024-25, to Infrastructure Canada to support more projects through the Green and Inclusive Community Buildings program.

Tax Fairness for Every Generation

• The government is implementing measures to adjust taxes for the top tier.

For a complete copy of the 2024 Federal Budget, click here.