Budget 2024: Fairness For Every Generation

I. Introduction

It is evident that the Liberal government sees Budget 2024 as an opportunity to restore "fairness for every generation." Overall, the budget includes $52.9 billion in new spending plans in the next five years, of which $39.2 billion represents net-new spending, as well as an estimated $20 billion in targeting new tax revenue, including tobacco and vaping taxes.

The government's projections for the deficit are largely in line with previous predictions. The federal deficit is projected to be $39.8 billion in 2024-25, $38.9 billion in 2025-26, and declining over the three years following, to $20 billion by 2028-29.

After years of high spending, with a possible recession on the horizon and the cost of living straining Canadians' finances, Deputy Prime Minister and Finance Minister Chrystia Freeland has set three very specific fiscal guideposts: maintain the 2023-24 deficit at or below $40.1B, lower the debt-to-GDP ratio in 2024-25, and keep