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January 23, 2022

What next week's budget may bring

By Gordon Powers, Sympatico / MSN Finance

The Conservative budget scheduled to be tabled next Tuesday is probably going to disappoint a lot of people – and not all of them live in Windsor. 

First off, is it even going to pass? I’d say yes. Liberal Leader Michael Ignatieff is preparing his party for a real election, not another no-confidence showdown. But he won’t go away without a fight.

The Conservatives have hinted that the budget will include a borrowing frenzy that could result in a $30-billion deficit this year, all designed to boost Canada’s lagging economy.

Kitchen table changes may include more training money for those being downsized, including a possible boost in EI benefits; a series of tax credits to encourage home renovations; easier access to credit for both consumers and small business; and more social housing for low-income families. And while another GST cut seems unlikely, there has been some talk of raising the GST exemption for smaller businesses earning less than $30,000 a year to $50,000.

In addition to the existing $4-billion bailout of the auto sector, the forestry, aerospace, and mining industries all seem likely to receive some support.

Will it work? To some extent, yes. Canada's economy will rebound when the world economy takes off, not before. So, while welcome, the type of domestic stimulus being kicked around will likely have only a limited impact in the short run.



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

James HaversJames Havers

James is the senior editor of MSN Money living in Toronto. He has worked for the Nikkei Shimbun (Tokyo),,, Canadian Business and other publications. Havers turned to journalism after teaching overseas.

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...