Friday, September 29, 2023
HomeEconomyCanada's Trudeau announces $4.5 billion inflation relief package for low-income earners

Canada's Trudeau announces $4.5 billion inflation relief package for low-income earners

Ismail Shakil and Steve Scherer

OTTAWA (Reuters) – Canadian Prime Minister Justin Trudeau announced 4.5 billion Canadian dollars ($3). 43 billion) Tuesday’s measures are aimed at providing low-income households with relief from high inflation. Trudeau said the tax and Canadian dollar 500 one-time supplementary housing benefit is offered to low-income earners who need help with rent.

Trudeau’s Liberal government will also provide up to annually for children under 12 dental care costs in Canadian dollars) for those who do not have access to dental insurance.

“These things are going to have an impact on people’s lives right now, but they’re also targeted enough that we don’t believe they’re going to contribute to higher inflation,” Trudeau said in a new statement. St Andrews, Brunswick (NYSE: BC) told reporters.

Wh The Bank of Canada remains concerned about rising prices and pledged to raise interest rates to

after further hikes. last week.

Derek Holt, head of capital markets economics at Scotiabank, expects the stimulus to kick in in the first and second quarters of

. . “I expect this to increase inflationary pressures early in the year,” he said, adding that he expects it to “increase pressure on the Bank of Canada to raise its policy rate above 4%.”

Support The package includes funds previously allocated in the budget and C$3.1 billion in additional funding, Reuters reported earlier last week, citing government sources.

Income tenants and children’s dental care plans were part of a deal Trudeau struck with the opposition New Democrats (NDP) in March in exchange for its support to keep his minority government in power until 2025.

Establishing a national dental care system is one of the cornerstones of the agreement, and Trudeau said his government plans to expand dental benefits to more people by the end of next year, with the full programme set by 2025Finish.

“I know many families are overwhelmed by skyrocketing costs for groceries, rent and gas, so immediate help is critical,” NDP Leader Jagmeet Singh said in a statement following Trudeau’s announcement.

($1=1.3121 CAD)



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