The Department of Finance released its Fall Economic Update today and was largely used to promote the positive trajectory of many financial metrics in Canada, while also warning of a potential coming recession. There were few new announcements, and plenty of references to announcements made in the 2022 Budget that have not yet been finalized, but are still intended to be.
Fall Economic Update highlights:
- 2022-2023 Deficit forecast reduced to ~$36B, down from ~$52B in the spring Budget, forecast to be a small surplus in 2027-2028
- Low unemployment rate; lowest net deficit-to-GDP of all G7 countries
- Permanently eliminate interest on Federal student and apprenticeship loans, effective April 1, 2023
- Payments of Canada Workers Benefit made quarterly instead of being paid at year end with personal tax return, effective July 2023
- Clean Technology Investment Tax Credit – 20 or 30% refundable credit on cost of eligible equipment used in certain environmentally-friendly energy activities, starting at Budget Date 2023
- Proposed 2% tax on share-buybacks made by certain public corporations, details in Budget 2023 for 2024 implementation