A Federal Budget Super-Summary

The 2023 Government of Canada Budget is a roadmap. What can get lost in the budget day lock-up, post-budget receptions or the news spin cycle, is the longer-term impact it has on the direction of the public policy and private sector investment. Luckily, smart people from sophisticated organizations publish commentaries about what the budget really means.

After reading 25+ budget reports, I strategically cherry-picked key lines on big themes and ideas to do a super-summary of what experts are saying the budget means for where Canada is going.

Institute for Sustainable Finance -- More spending and revenue will likely be needed to facilitate the?transition to a clean economy, address climate change, promote inclusion and close spending gaps on national defence and?foreign assistance. Now is not the time to delay on these important issues. Short-term economic circumstances are limiting action on longer-term priorities.

Business Council of Canada -- Budget 2023 also commits the government to outlining a concrete plan to improve the efficiency of the impact assessment and permitting processes for major projects.

Canadian Chamber of Commerce -- This was also a missed opportunity for the government to introduce measures to encourage private sector investment by fixing a broken regulatory system and stepping up efforts to get the provinces to eliminate barriers to interprovincial trade.

Toronto Region Board of Trade – The federal government’s commitment to increased immigration must be accompanied by a comprehensive national settlement strategy to ensure the right programs, policies and supports are in place to ensure new immigrants can thrive in tomorrow’s economy.

Canadian Renewable Energy Association (CanREA) -- Canada needs to expand wind and solar energy capacity almost ten-fold in order to meet our commitment to achieving net-zero GHG emissions by 2050.

Cement Association of Canada -- The certainty that contracts for difference can provide is the difference between attracting investment, building projects, and creating clean jobs – or – conceding the opportunity to our competitors.

Canadian Construction Association - Association canadienne de la construction -- 2023 Federal Budget fell short of providing the right conditions to secure economic growth and stability for all Canadians through concrete action on workforce capacity building, fair procurement, and trade-enabling infrastructure investment.

Canadian Climate Institute / Institut climatique du Canada -- This budget takes significant strides toward building?bigger, cleaner and smarter?electricity systems across the country, with new investment tax credits for the electricity sector worth $6.3 billion over the next five years and $25.7 billion over the next ten

RBC -- With the federal government taking on a larger role in funding healthcare and promoting the energy transition, progress on reducing deficits and debt-to-GDP will be sluggish at best.

TD Economics -- Canada stands to leverage the IRA given concessions in domestic content requirements that include Canada and Mexico. In a convoluted way, the IRA represents both opportunity and challenge. And the maturation of climate policy in Canada is clearly reacting to where the government sees those opportunities that ought to be supported, or where challenges exist that require more support.?

McMillan Vantage -- In light of the “Buy America” provisions in the Inflation Reduction Act, the government will initiate targeted consultations on the possibility to introduce new reciprocal treatment for the measures in the government’s plan to build a clean economy.

StrategyCorp -- While fiscal hawks may continue to blanch at the government’s level of spending, today’s budget keeps in line with Liberal fiscal policy on debt and deficits and will be a sharp point of contrast between the governing Liberals and the opposition Conservatives, creating a sustained wedge issue between the parties.

NATIONAL Public Relations – Liberals and Conservatives are in a statistical tie for vote intentions with Conservatives leading with 33%, two points ahead of the Liberals.

Sussex Strategy Group -- If the recession is shallow and short, the Liberals will be able to continue to drive forward their clean economy agenda. If it becomes more severe than the Budget anticipates, tough decisions will need to be made in the Fall Economic Statement and in Budget 2024.

Navigator Ltd. -- While the Green Economy comes out on top in this year's budget, the rest of the Canadian economy is left begging for scraps, with little to no broader economic stimulus. While the remaining sectors will have to rely on existing ongoing measures from previous budgets, and less promising new opportunities on the horizon.

Enterprise Canada -- Notably the biggest missing piece that many – including the NDP – will be disappointed by is the omission of any mention or recommitment to a pharmacare plan (try to CTRL-F “pharmacare” in the budget document and you will have no results), or implementation plan for a National Pharmacare Act by the end of 2023, as promised in the Liberal-NDP agreement.