Quebec’s economic update focuses on helping seniors deal with inflation | 24CA News
The Quebec authorities is beefing up monetary help for low-income seniors by $8 billion, with the cash coming after they file their 2022 tax returns.
That’s the important thing measure introduced in an financial replace by Finance Minister Eric Girard, who additionally warned of a possible recession looming and introduced the Quebec authorities’s has constructed an $8-billion cushion into its monetary framework to deal with doubtlessly deteriorating financial situations.
The new measure for seniors comes on the heels of the CAQ’s re-election on October 3 — following an election marketing campaign marked by issues surrounding the elevated price of dwelling in Quebec.
For seniors who’ve been hit laborious by inflation, the utmost refundable senior help tax credit score will rise from $411 to $2,000.
This will improve the help supplied to seniors age 70 or older who already obtain this credit score, with 65 per cent of the help going to seniors whose annual earnings is lower than $25,000.
Assistance might be supplied primarily to low-income seniors, however the authorities can also be altering the eligibility standards. Before, seniors making $32,415 or extra didn’t obtain any help, now the cap might be raised to $64,195.
This means nearly 400,000 extra seniors might be getting the credit score — for a complete of 1.1 million seniors as of spring 2023.
“The significant increase in the cost of living is impacting the lives of Quebecers, particularly seniors and low-income individuals,” mentioned Girard.
“The government has chosen to help them quickly by protecting their purchasing power,” he mentioned.
Quebec’s financial progress slowing
Girard says the financial outlook for Quebec and Canada for 2023 has deteriorated.
At the start of the 12 months, demand remained sturdy whereas provide was restricted by quite a few financial shocks, together with lockdowns in China in addition to Russia’s invasion of Ukraine.
This imbalance added to inflation, which in latest months, has reached ranges not seen in many years.
Quebec’s financial progress is predicted to drastically sluggish from 3.1 per cent in 2022 to 0.7 per cent in 2023 — considerably decrease than March 2022 expectations.
With this, job creation will probably decelerate and trigger the unemployment charge to rise briefly, the minister mentioned.
Following a historic low in 2022, the federal government expects the unemployment charge to extend to a mean of 5 per cent in 2023.
Inflation slowing however stays excessive
The Consumer value index (CPI) over the previous 12 months has risen in Quebec, the minister mentioned — going from 1.3 per cent in January 2021 to a peak of eight per cent in June 2022.
Since July, the annual improve in inflation has been slowing, with the CPI at 6.4 per cent in October.
Partly accountable are exterior components, together with the gradual easing of disruptions within the provide chain and the rise in oil costs, which slowed after peaking in June 2022.
Still, inflation stays excessive — above the Bank of Canada’s goal vary of 1 to 3 per cent.
New tax on vaping merchandise
A brand new initiative introduced by the federal government will goal the vaping trade.
With one in 5 youngsters vaping, the federal government mentioned it’s involved for younger individuals’s well being.
The federal authorities introduced in its 2022 funds that it was introducing an obligation on vaping merchandise — and invited provincial governments to take part in taxing the merchandise.
As a part of this initiative, the entire income generated can be divided into two equal components between the federal authorities and the provincial and territorial governments.
As of Thursday, the ministry introduced Girard despatched a letter to Canada’s finance minister, expressing Quebec’s curiosity in collaborating within the co-ordinated strategy.
Quebec officers count on it can generate revenues of about $40 million a 12 months for the province.
