Federal budget | “Responsible” and bringer of “energy transition,” says Freeland

In her first speech since the presentation of the federal budget, Finance Minister Chrystia Freeland on Monday defended the proposed plan as “a responsible approach to tax matters”. […] which focuses on energy transition, innovation and people, “during a speech before the Board of Trade of Metropolitan Montreal (CCMM), at the Palais des Congrès.

Posted at 14:45

Clara Descurninges
The Canadian press

The president of the CCMM, Michel Leblanc, questioned the deputy premier about high inflation, recalling that “if governments spend a lot in their budget policies, this increases inflation and can create pressure for the Bank of Canada to move even more. quickly towards rising interest rates “.

“We took a responsible approach to the budget and, to highlight a number, we added 0.3% of GDP to the economy,” he replied. It is impossible to say that such a small amount will have an effect on inflation. ”

According to her, international causes are responsible, such as “the price of oil”, “the price of agricultural products” and the effects of the pandemic on supply chains.

As for the shortage of manpower, Mr.myself Freeland said solving the housing crisis could kill two birds with one stone, because “if you want to have more people, you have to build more housing.”

To do this, it would be necessary above all to “find a way to build them”, in particular through the creation of a new 4 billion fund.

However, he warned that a single solution will not be able to solve these complex problems.

Green transition

The deputy premier said her budget will open the door to a more eco-responsible economy, particularly by creating a federal fund to “attract private investment” into the green shift, which she believes are essential for a successful transition. .

As these are new technologies, the bet can often be risky for investors, he explained, while the fund would help mitigate this risk.

“The rest of the world has decided to go ahead with the green transition, he added, therefore, strictly from an economic point of view, it is essential that we do the same, otherwise it will be impossible to find markets. ”

M.myself Freeland was less outspoken when asked about her government’s approval of the Bay du Nord oil project just days after the latest Intergovernmental Panel on Climate Change (IPCC) report warned the world of expansion of hydrocarbon production.

“We need to understand that it’s really a transition, it’s not a transition that we can make overnight,” he said, citing his travels as an example.

“I am very aware, for example, that I arrived here this morning by plane,” she said. It might be better for me to go by train. We’re going to build high frequency trains to make it easier, but I came by plane this morning, and that plane used oil, that’s the reality. ”

More for the defense

The budget provides for an increase in National Defense funding of over $ 8 billion, for a total equivalent to 1.5% of gross domestic product (GDP).

All member countries of the North Atlantic Treaty Organization (NATO) have pledged to increase their military spending to 2% of GDP by 2024.

The Russian invasion of Ukraine caused shockwaves across Western countries, many of which predicted an expected increase in defense spending.

To find out why Canada has not yet reached the 2% target, Minister Freeland recalled that the new amount allocated this year is already significant.

“We also told the Defense Ministry to very quickly prepare a practical strategy for Canada’s defense and Canada’s participation in our international alliances,” he said, saying he wanted to wait for a concrete plan before providing funds. “For me, it’s only important to budget money when we have a plan to spend it. ”

This article was produced with financial support from Meta Fellowships and the Canadian Press for News.

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