OTTAWA
Thursday's federal budget includes $22 billion in new spending on affordability measures, but an economist says the focus on investment overshadows help for everyday Canadians.
One of the main measures is a 50 per cent top-up to the Canada Groceries and Essentials Benefit for the 2026-27 program year.
Combined with previous increases, a single person could get up to $1,290 and a couple with two children could get up to $2,570.
The government says the program will give Canadians collectively $4.1 billion more in support to help pay for essentials.
"We'll take any of the rebates we can get, right?" Sushama Chakraverty told CBC News in downtown Toronto after the budget details were announced.
The budget also expands the Canada Workers Benefit by lowering the minimum earnings needed to qualify from $3,000 to $500.
The maximum benefit would rise to $1,859 for a single person without children and $3,143 for families.
Ottawa estimates about 1.9 million low-income workers would receive more, including 180,000 people who do not currently qualify.
Other measures aimed at bringing down costs were already announced, including the suspension of the federal fuel excise tax through Jan. 31, 2027.
The suspension saves Canadians about 10 cents a litre on gasoline, with the budget showing the government earmarked $5.3 billion on that relief.
But economist Armine Yalnizyan says aside from some relief on things like groceries and gas, there's little in the budget for everyday people.
"It's not like they're doing nothing," Yalnizyan said. "But the short answer is Canadians are going to need a lot of patience because this budget is not there to support them."
In a survey of 1,809 Canadian adults conducted by Abacus Data ahead of the budget, only 10 per cent expected it to make things better for their household.
Almost two-thirds of respondents said affordability was one of the most important issues facing the country.
The biggest-ticket spending on affordability is related to housing, with $11.2 billion dedicated to ending homelessness within 10 years.
To help low-income renters, the government is also renewing the Canada Housing Benefit for 10 years, providing $1.7 billion starting in the 2028-29 fiscal year.
Yalnizyan said the pledge to end homelessness is a welcome one, but the housing benefit doesn't go far enough and the money to fund new housing projects won't benefit Canadians for years to come.
"There is money there for it but it's not coming through fast enough," Yalnizyan said. "There's too much wait and see, come and talk to us later."
Those affordability measures are also eclipsed by tax cuts and investments in infrastructure and other major projects.
The previously announced productivity mega-deduction alone accounts for $36 billion worth of spending, compared to $22 billion overall for affordability.
Rather than boosting everyday Canadians, Yalnizyan says the budget is focused on catalyzing investment and attracting new spending within Canada.
"It's not a bad budget for all of that, but they've left out the people," Yalnizyan said.
Tax credit and retirement plan changes
Budget 2026 makes the Canada caregiver credit refundable, helping caregivers who have incomes so low that they don't pay tax.
Ottawa estimates 585,000 caregivers would benefit, including 180,000 who currently receive nothing from the credit.
Eligible caregivers could receive up to $1,260 annually beginning in 2027.
For those saving for retirement, the government also plans to merge Registered Retirement Savings Plans and Registered Retirement Income Funds.
The "RRSP-for-life" plan would eliminate the need to switch at age 71 and would also allow a surviving partner of the RRSP holder to transfer those savings tax free.
The budget proposes moving the personal income tax filing and payment deadline from April 30 to May 15, beginning with the 2027 tax year.
The government estimates the change could save taxpayers about $230 million in interest and penalties over five years.
It also proposes raising the net-tax-owing threshold that triggers instalments from $3,000 to $7,500 for most Canadians, starting with the 2028 tax year.
On housing, the budget proposes raising the home-price ceiling for optional mortgage insurance from $1 million to $1.5 million and allowing 30-year amortizations where at least one borrower is a first-time buyer or the property is newly built.
Smaller changes include requiring banks to provide a single annual statement showing all fees charged on chequing and savings accounts.
The budget also includes permanent, free entry to museums for people under 25 years old and extends the Canada Strong Pass program for another summer.
e2gold.ca reported in November that small businesses were seeking tax cuts and tariff relief ahead of the federal budget.
This story was written by the e2gold.ca newsroom from reporting by CBC News, Radio-Canada and Yahoo News. Quotes are checked word for word against that reporting.