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2023 Canadian federal, provincial and territorial budgets

Up-to-date information on the federal, provincial and territorial budgets.
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.

The 2023 federal budget will be tabled on Tuesday March 28 at 4pm (ET).

Federal budget 2023 | What to expect

With inflation at its highest level in decades, rising interest rates and fears of an economic recession, this year’s federal budget (Budget 2023) is expected to focus on delivering incentives that spur sustainable and long-term growth, while reassuring Canadians that their interests are being prioritized.

At a high level, Canadian businesses are expected to see further details — beyond those provided in the 2022 Fall Economic Statement (FES) — on the government’s response to the US Inflation Reduction Act (IRA), which offers generous US tax incentives for clean technology investments and threatens to pull capital and related skilled talent away from projects in Canada if new measures to keep pace are not introduced here.

The provinces are expected to be looking to secure a significant increase in federal funding under the Canada Health Transfer to address growing concern over the capacity of Canada’s health care system to provide adequate levels of care to its citizens. On the international front, additional investments in national defence and humanitarian relief may be expected as the ongoing war in Ukraine enters its second year and other global geopolitical concerns mount.

EY business and tax subject matter experts are available to provide insights on the federal budget and its impact on Canadian businesses and taxpayers.

The 2023 federal budget is expected to be tabled in the first quarter of 2023 and may include:

  • Investment Tax Credit for Clean Technologies: First announced in Budget 2022, a few more specifics concerning this refundable tax credit were included in the 2022 FES as a first response to the US IRA, with further details promised in Budget 2023.
  • Investment Tax Credit for Clean Hydrogen: The 2022 FES announced the government would proceed with a commitment in the 2023 Budget to establish an ITC to support investments in clean hydrogen. The Department of Finance launched a consultation that ran from December 1, 2022 to January 6, 2023, stating that details of its design will be announced “in due course”.
  • Investment Tax Credit for Carbon Capture, Utilization and Storage (CCUS): This tax credit was initially promised in Budget 2021 with further details contained in Budget 2022. Draft legislative proposals released for comment in August 2022 were not included in Bill C-32, the Fall Economic Statement Implementation Act 2022, which contained other tax measures first proposed in the 2021 and 2022 Budgets and received Royal Assent in December 2022.
  • Canada Growth Fund: The government’s intention to establish a multi-billion-dollar Canada Growth Fund to attract private capital investments was announced in Budget 2022. Further details were announced in the 2022 FES, including that it will be operated by a team of professional investors reporting to an expert board of directors independently from government and promising that a permanent structure will be put in place “in the first half of 2023.”
  • Scientific Research & Experimental Development (SR&ED) Tax Credit: The 2022 Budget announced that the government would review the existing program (the cornerstone of its innovation strategy) and examine the suitability of adopting a patent box regime. The 2022 FES stated that work on the review is underway and further details will follow in Budget 2023.
  • Creation of a Canadian Innovation and Investment Agency: The 2022 Budget announced the government’s intention to establish a Canadian Innovation and Investment Agency that would operate independently from government but be accountable to Parliament, committing $1 billion in funding over five years to support its initial operations. The 2022 FES shared that “further details on the new agency will be released in a blueprint in the coming weeks.”
  • Investing in Canada’s Advanced Manufacturing Competitiveness: The 2022 FES stated that the government will work with industry experts and unions to make Canada the premier destination for investment in clean technology manufacturing and, following these consultations, will announce new measures as part of Budget 2023.
  • Tax on Share Buybacks: The 2022 FES announced the government’s intention to introduce a 2% corporate-level tax that will apply on the net value of share buybacks by public corporations, stating they will announce details in Budget 2023.
  • International Tax Reform: The 2022 FES reconfirmed Canada’s commitment to Pillar One (Reallocation of Taxing Rights) and Pillar Two (Global Minimum Tax) of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative but provided no further details on Canada’s proposed 3% Digital Services Tax that is scheduled to come into effect on January 1, 2024 unless a consensus is reached on a multilateral approach before then pursuant to the BEPS Pillar One proposals. Budget 2023 may provide further details.
  • Changes to Canada’s International Transfer Pricing Rules: The 2021 budget promised a consultation paper would be released “in the coming months” but one has not yet been released.
Federal budget 2023 insights & analysis

Federal budget 2023: Highlights
Read our Highlights Tax Alert on the 2023 federal budget. Available the evening the budget is tabled.

Federal budget 2023 Tax Alert
Read our detailed Tax Alert on the 2023 federal budget. Available the evening the budget is tabled.

Federal Budget 2023 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.


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. Will be available the evening the budget is tabled.

Learn more

Photo of Albert Anelli
The upcoming federal budget presents some challenges for the government. It must meet the expectations of Canadians who are worried about rising inflation and concerned about a possible recession. At the same time, it must exercise fiscal restraint on program spending in the face of rising interest rates and debt servicing costs. It must also respond to measures in the US Inflation Reduction Act that are designed to attract investments in clean technologies to the United States by announcing incentives to invest in Canada. Failing to do so will risk Canada losing out on new business opportunities that create economic growth and prosperity. Satisfying these competing demands will be a balancing act that requires the government to make necessary but difficult choices.
Albert Anelli
EY Canada Managing Partner, Tax

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2023 Provincial and territorial budget Tax Alerts

Explore EY's provincial and territorial budget Tax Alerts:

Northwest Territories budget — 8 February 2023

Nunavut budget — 23 February 2023

Alberta budget — 28 February 2023

British Columbia budget — 28 February 2023

Yukon budget — 2 March 2023

Manitoba budget — 7 March 2023

Quebec budget: highlights — 21 March 2023

Quebec budget — 21 March 2023

New Brunswick budget — 21 March 2023

Saskatchewan budget — 22 March 2023

Ontario budget — 23 March 2023

Newfoundland and Labrador budget — 23 March 2023

Nova Scotia budget — 23 March 2023

Prince Edward Island budget — tbd


Past budget coverage:

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