A federal budget focused on housing is good for young Calgarians

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The federal budget announced Tuesday promises to restore “generational fairness” for young Canadians, with a heavy focus on housing, but some want faster action in other areas.

When she debated the document in the House of Commons, Finance Minister Chrystia Freeland said it was “harder to establish yourself” for young people than older generations.

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“It's really not fair what they're dealing with right now,” Freeland said at a press conference before his budget speech.

The budget pledged $8.5 billion over the next five years to build millions of new homes, improve student aid and grant programs, and nearly $2.6 billion to create new jobs.

The deputy premier's comments and the budget's emphasis on affordability resonate with many young Calgarians right now, said Meahon Reid, executive director of the Calgary Poverty Advocacy Group.

“Some promising steps, but we don't see the level of urgency or detail where we need to address accessibility issues immediately,” Reed said.

He said while the budget made positive moves for affordability, the timeline was still critical. Calgary's vacancy rate is expected to drop 1.1 per cent this year, leaving many Calgarians struggling to find housing, according to the Canada Mortgage and Housing Corporation.

“We were very pleased with the investment in housing. . . “The importance of building new housing cannot be overstated,” Reed said.

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Housing needed in Calgary

In addition to the significant housing investment unveiled in the past few weeks, the 2024 budget includes a commitment to “unlock” federal properties across the country for rental to housing providers. It includes federally owned land in the southwest Calgary neighborhood of Curry that would allow for about 100 homes.

Mayor Jyoti Gondek told reporters Tuesday afternoon that she didn't have the details, but that “any facility we can do will benefit Calgarians.

“What concerns me is that when we look at the 60-plus people who move here every day and we have to make sure they all have housing – there are people who have been living in the city for a long time. It's a time when we're struggling with affordability and housing, so we need to make sure this federal budget targets everyone,” Gondek said.

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Gondek lamented that the budget does not address how Ottawa will allocate funds to municipalities.

“It's something we've been asking for a while,” he said. “I would like to see some kind of process where provinces and municipalities can work with the federal government to find a sustainable funding solution.”

Budget targets young voters; may affect the elderly

Laurie Williams, a political scientist at Mount Royal University, said the budget's focus is on younger voters — the same demographic that helped propel Prime Minister Justin Trudeau to power in 2015. Promises of affordable housing and student grants all bode well for young Canadians, Williams said.

“It was very clear, but not exclusive,” he said. “What they did was create jobs, and that focused on the idea of ​​expanding the middle class, which appeals to young people and others.”

Even if the wealth tax isn't as rumored, the capital gains tax increase — from 50 percent to 66 percent for businesses and individuals on earnings over $250,000 — could punish some seniors. owned their homes for a long time, and wealthy people and business owners. The tax will cost the federal government $19 billion over the next five years.

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“This may be a point of some adjustment and the finance minister has acknowledged that it will be controversial,” he said. “So we have to wait and see what the response is. But it may affect older people more than others, which is certainly a political risk that can be problematic.”

Overall, projected budget spending will increase to $535 billion in 2024-25, compared to $497.5 billion in 2023-24. The deficit is projected to be $39.8 billion, compared to $40 billion last year.

There is $11.5 billion in new spending this year and $53 billion over the next five years.

— With Canadian Press files

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