Do budgets matter?

Finance Minister Chrystia Freeland tabled her latest budget Tuesday, with big spending plans to increase the housing supply, deliver on commitments to Indigenous people, boost funding to the Canadian military and finally deliver on a promise to create a Canada Disability Benefit.

But there is more to the budget’s $39.3 billion in new spending than just those big ticket items. There is a little bit of money in there for nearly everyone. It is an election budget, with lots of promises, most of which start to kick in next year. And to pay for it all, without sinking further into deficit and blowing past Freeland’s debt-to-GDP ratio, the federal government is increasing the inclusion rate on capital gains, affecting business investments and, with some exceptions, those Canadians earning more than $250,000 from capital gains annually.

This week on “It’s Political,” we’ll look at the government’s 2024 spending plan and its decision to target capital gains as a way of raising taxes with economists Armine Yalnizyan and Christopher Ragan. But before that discussion, we’ll unpack the budget process and look at the last budget, the 2023 budget, and review its forecasts, its promises and what it actually delivered on.

Some of the clips this week were sourced from CPAC, WhiteHouse.gov and Right Side Broadcasting.

This episode of “It’s Political” was produced by Althia Raj and Michal Stein, and mixed by Kevin Sexton. Our theme music is by Isaac Joel.

In this episode: Armine Yalnizyan, an economist and Atkinson Fellow on the Future of Workers, Christopher Ragan, the director of McGill University’s Max Bell School of Public Policy, Heather Scoffield, senior vice president of strategy at the Business Council of Canada, Yves Giroux, the Parliamentary Budget officer, Tyler Meredith, a senior fellow at the Munk School and former budget crafter to Prime Minister Justin Trudeau, Kevin Page, the president and CEO of the Institute of Fiscal Studies and Democracy at the University of Ottawa, and Evert Lindquist, a University of Victoria School of Public Administration professor. Hosted by Althia Raj.