Question Period Note: Budget 2023

Budget 2023

• The 2023 Budget will invest in the priorities of Canadians that are the foundation of economic development such as health, an affordable economy and green growth that creates good jobs.

• Promising sectors for the Quebec economy, such as clean technologies and critical minerals, will receive significant support.

• Canada Economic Development for Quebec Regions will continue to be a key player in the development of Quebec's businesses and regions, notably through investments announced under the Regional Economic Growth through Innovation program and support for local tourism projects and events.

• Canada Economic Development for Quebec Regions continues its efforts to increase its effectiveness and adapt its interventions in response to the current and future challenges of SMEs and the regions of Quebec.

Generally, the budget has considerable expenditures and:
1. Is oriented towards individuals and citizens, given the importance of certain measures that are dedicated to them, such as:
i. measures to counter the effects of inflation (e.g. grocery reimbursement)
ii. measures targeting health and dental care and support for Indigenous peoples housing;
2. is oriented towards the green transition in terms of the economy and support for businesses, with significant use of tax leverage (tax credit);
3. includes reductions in government spending, including consulting, professional services and travel (just over $7 billion over 5 years), as well as eligible departmental spending without affecting service to citizens (almost $7 billion over 4 years).

Two measures directly target all regional development agencies (RDAs) and others are of interest to CED:

Regional Economic Growth through Innovation (REGI)
* $50 million for 2023-2024, for Regional Economic Growth through Innovation funding across all RDAs.

Tourism
* $108 million over 3 years, starting in 2023-2024, to support local tourism projects and events, across all RDAs.

Official Languages
* $3.8 billion over 5 years, for the Action Plan for Official Languages - 2023-2028 which includes:
* $679.2 million over 5 years, beginning in 2023-2024, to work with provinces and territories to facilitate access to quality minority language education; and
* additional funding of $373.7 million over 5 years, starting in 2023-24, to support new and enhanced federal initiatives under the plan.

Critical Minerals/ Clean Technology
* $500 million over 10 years to the Strategic Innovation Fund to support the development and application of clean technologies.
* The Fund will also invest $1.5 billion of its existing resources in clean technology, critical minerals and industrial transformation sectors.

Effective Government
• Reduction in spending on consulting, other professional services, and travel (approximately 15% of planned 2023- 2024 discretionary spending in these areas) resulting in savings of $7.1 billion over 5 years beginning in 2023-24 and $1.7 billion thereafter. The focus will be on reducing spending on professional services (management consulting).
• Gradual reduction (approximately 3%) in eligible spending by departments and agencies by 2026-2027 which will result in a reduction in government spending of $7 billion over 4 years, starting in 2024-2025, and $2.4 billion per year thereafter.

The 2023 federal budget was tabled on March 28, 2023. Here are the implications for Canada Economic Development for Quebec Regions (CED).