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2024 Canadian federal, provincial and territorial budgets

Comprehensive budget insights and analysis for you and your business.
Explore the key tax measures announced in the federal, provincial and territorial budgets and how they may affect your business and personal circumstances. Our team of EY tax professionals will do a deep dive into the proposals and provide an in-depth analysis on what this could mean for you and your business.

Federal budget 2024 | What to expect

Recent polling consistently shows the governing Liberals have become unpopular with voters while support for the opposition Conservatives has risen dramatically. This shift has largely been driven by voter fatigue after eight years of Liberal governance and mounting concerns over inflation, rising interest rates and increases in the cost of living, particularly food and housing.

The government is seen as having recognized and reacted too slowly to these issues with appropriate policy responses.

The government’s track record of significant deficit spending presents a challenge. It needs to balance any significant new spending initiatives designed to address these issues against the need to be seen as fiscally prudent as debt servicing charges have risen dramatically with the increase in interest rates and borrowing costs.

Despite the Liberals’ minority government status, a general election is unlikely in 2024 provided the New Democratic Party continues its support under the terms of the Supply and Confidence Agreement. Unless the government is defeated before then, the next fixed-date general election will not likely be held until October 20, 2025. While this provides the government with some breathing room, the 2024 budget will nevertheless probably be an “election budget,” with new spending and policies designed to restore the government’s popularity.

Key themes and priorities will likely continue to include the environment and climate change, with measures including the carbon tax, aka “the price on carbon.” The Conservatives have promised to “axe the tax.” Fuel charge rates increased to $65/tonne of CO2e in 2023 and will reach $170/tonne by 2030.

Last fall, the government announced temporary relief for light fuel oil used exclusively in eligible heating activities – a political move widely seen as designed to shore up its support in Atlantic Canada. It remains to be seen if such relief will open the door to further carve-outs announced in the budget for all forms of home heating, as demanded by the premiers of Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia.

The government is also expected to respond to cost-of-living pressures Canadians are experiencing, with some additional measures directed specifically at food and housing costs. One of the drivers of excess housing demand is a historically high level of immigration, particularly foreign students and temporary foreign workers. The government may be expected to include measures in the budget that address these sources of excess demand.

The budget may provide further details around health care measures, including those set out in the Supply and Confidence Agreement with the NDP such as the income-tested dental care plan and a national pharmacare program.

Although personal and business tax rate increases are not expected, the government may provide further details around international tax initiatives, including the OECD/G20’s Base Erosion and Profit Shifting (BEPS 2.0) initiatives. These include the coming-into-effect date of the proposed Digital Services Tax (BEPS Pillar One), further details on the Global Minimum Tax (BEPS Pillar Two), and follow-up details on the government's consultation on the transfer pricing rules.

The budget may include proposals resulting from the review of the existing Scientific Research & Developmental (SR&ED) tax incentive program that was announced in the 2023 budget.

It may also provide an update on a number of proposed income tax legislative measures contained in Bill C-59, Fall Economic Statement Implementation Act, 2023, now being considered by Parliament and not yet substantively enacted, including the clean energy tax credits announced in the previous budget.

Federal budget insights & analysis

Federal budget 2024: Highlights+ Tax Alert
Read our Highlights+ Tax Alert for an in-depth analysis of what the 2024 federal budget could mean for you and your business.

Available the evening the budget is tabled.

Federal Budget Webcasts

Live fireside budget debrief
Join EY tax experts on budget day at 6:30 p.m. EDT for a 30-minute fireside debrief as we discuss the highlights and key aspects of the budget.

Registration will open once the budget release date is announced.

In-depth budget analysis
Watch the on-demand replay as we dive deep into the federal budget and provide an in-depth analysis on what this could mean for you and your business.

Available the evening the budget is tabled.

Photo of Albert Anelli
The 2024 budget is expected to outline substantial investments in areas such as health care and the environment, while managing ongoing concerns related to overspending and the growing debt. The government will likely aim to secure the public's trust in its financial handling of the economy, while striving to accommodate additional expenditures, especially for those affected by inflation, high interest rates and rising living costs. While tax increases are not expected, businesses should be prepared for potential changes in international tax rules and tech-related taxes.
Albert Anelli
EY Canada Managing Partner, Tax

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2024 Provincial and territorial budget Tax Alerts

Explore EY's 2024 provincial and territorial budget Tax Alerts:

British Columbia budget — 22 February 2024

Nunavut budget — 26 February 2024

Alberta budget — 29 February 2024

Nova Scotia budget — 29 February 2024

Prince Edward Island budget — 29 February 2024

Yukon budget — 7 March 2024

Quebec budget — 12 March 2024

Manitoba budget — 19 March 2024

Saskatchewan budget — TBD

Ontario budget — TBD

New Brunswick budget — TBD

Newfoundland and Labrador budget — TBD

Northwest Territories budget — TBD

Past budget coverage:

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