To help Canadians cope with rising inflation, the federal government has noted measures already implemented in the April budget, as well as previous ones.
However, one economist says officials could have implemented new policies that would have a greater and immediate impact on families.
David MacDonald, senior economist at the Canadian Center for Policy Alternatives, told CTV’s Your Morning that the highlights of Thursday’s speech by Deputy Prime Minister and Finance Minister Chrystia Freeland “will surely help” some Canadians, but noted that the measures themselves are not new.
“Larger-ticket items were introduced two budgets ago and have already been launched,” MacDonald said Friday.
“In a way, this is a review of the things they plan to put in place not necessarily for inflation. It will certainly help people in these circumstances, but it’s nothing new.”
Freeland on Thursday unveiled a multi-axis “affordability plan” outlining how the government intends to address inflation, building on pre-existing commitments.
The measures, which total $ 8.9 billion in spending this year, include planned incentives for certain benefit programs, such as the benefit of Canadian workers, as well as the federal government’s child and dental care plans. Freeland also cited “respect” for the Bank of Canada, fiscal restraint and the creation of “good jobs” as measures that will help guide the economy through the current turmoil.
MacDonald said Thursday’s speech could have been used by the federal government to implement new policies that would better help curb the impact of inflation. Some examples he suggests include a single transfer to all those receiving a particular federal benefit, such as what the federal government did with the GST during the pandemic, as well as the introduction of a quick formula to get these pre-existing commitments out of pocket. of Canadians. before.
“Unfortunately, none of these measures were put in place, so it’s kind of a missed opportunity,” he said.
However, MacDonald noted that it is worth noting that all federal revenue transfer programs are indexed, which means they will increase to adjust to inflation. But he said there are often delays when this adjustment takes effect.
When it comes to the old-age security pension, for example, MacDonald said that the delay is between three and six months between the time of inflation and the increase in real transfers to bank accounts. of the people. But for other benefits, it could be longer.
“For other transfers, such as child benefits, for example, a delay can be more than a year, so people will have to wait until 2023 to see an increase in these benefits.” explained.
Watch the full CTV Your Morning video at the top of this article to learn more about the impact these measures will have on rising Canadian inflation.