The 2023 budget tabled by Finance Minister Chrystia Freeland on Tuesday promised billions in dental care, GST rebates for low-income Canadians, and significant investments to build Canada’s clean economy—but no money to help cover Toronto’s $933 million shortfall from its 2023 budget (a deficit largely blamed on decreased TTC ridership and increased homelessness costs from during the pandemic).

“The 2023 federal budget fails to address the City of Toronto’s request for operating budget support,” Deputy Mayor Jennifer McKelvie said in a statement on Tuesday. She also noted that the city requires $235 million in “immediate support” from the federal government to match the provincial government’s pledge of $235 million to help cover the city’s outstanding 2022 COVID-19 shortfall.

“While I am thankful for past support during the COVID-19 pandemic from the Government of Canada, I’m disappointed the Deputy Prime Minister — a Toronto MP — would ignore a direct commitment the federal Liberals made during the last election to former Mayor John Tory and the City of Toronto,” she added

McKelvie said that when she spoke with Freeland on Monday, Freeland was very clear that the commitment the government made in the last federal election “would not be honoured in this budget.”

“As a city council, we made the decision to fund transit and fund unprecedented homelessness support throughout the pandemic so that we protected the TTC and protected our most vulnerable residents,” McKelvie stated, noting that the city raised property taxes every year, including this year, with the largest property tax increase since the amalgamation, and they introduced tools—such as the city building levy and vacant home tax — to help fund the budget.

“We have been very clear to the Government of Canada what the city’s needs are and about the importance of supporting Toronto — the country’s economic engine. My job right now is to stand up for Toronto and I won’t hesitate to fight to make sure our city receives its fair share from the other governments. Our advocacy will continue in the weeks and months ahead,” McKelvie stated.

Five budget highlights for Torontonians

Although the federal budget failed to provide substantial support for cash-strapped Toronto, here are five initiatives tabled in the budget that Torontonians can benefit from:

• Grocery rebate—the grocery rebate will provide eligible couples with two children with up to an extra $467; single Canadians without children with up to an extra $234; and seniors with an extra $225 on average. This will be a one-time payment that will be delivered through the GST credit to approximately 11 million Canadians/families.

For 11 million Canadians and Canadian families, a new Grocery Rebate will help make up for higher prices at the checkout counter—without adding fuel to the fire of inflation.

— Chrystia Freeland (@cafreeland) March 28, 2023

• New dental care plan — by the end of 2023, the government will begin rolling out a dental care plan for what will cover up to nine million uninsured Canadians; it will be expanded to people under 18 and seniors at a cost of $13 billion over five years beginning in fiscal year 2023–24. The feds plan to expand that eligibility to anyone who meets the household income requirements by 2025.
• Cracking down on junk fees—the federal government is cracking down on “junk fees” to ensure that businesses are transparent with prices. Junk fees could include higher telecom roaming charges, event and concert fees, excessive baggage fees, and unjustified shipping and freight fees.
• Cracking down on predatory lending—predatory lenders take advantage of vulnerable Canadians by offering very high interest rate loans. The current criminal rate of interest under the Criminal Code is a 47% APR (i.e., the annual interest rate that is charged on a loan or credit card balance). A 47% APR means that for every $100 borrowed, the borrower will pay an additional $47 in interest and fees over the course of a year (not including compounding interest). The feds plan to lower the criminal rate of interest from 47% to 35% APR; they also plan to require payday lenders to charge no more than $14 per $100 borrowed.
• Making life more affordable for students—the budget offers $813.6 million in 2023–24 to enhance student financial assistance for the school year starting August 1, 2023. This includes increasing Canada Student Grants by 40% (providing up to $4,200 for full-time students), raising the interest-free Canada Student Loan limit from $210 to $300 per week of study, waiving the requirement for mature students, aged 22 years or older, to undergo credit screening to qualify for federal student grants and loans for the first time. Students will also benefit from improved Registered Education Savings Plans (with increased limits on certain RESP withdrawals from $5,000 to $8,000 for full-time students, and $2,500 to $4,000 for part-time students).

We’ll talk about #Budget2023 more in the weeks to come, but here’s what you should take away from it today: We’re going to be there for you as we continue to grow the middle class and build an economy that works for all Canadians. https://t.co/9IDa8vITBs

— Justin Trudeau (@JustinTrudeau) March 28, 2023

Other budget highlights for Canadians include reduced credit card transaction fees (the feds struck a deal with major credit companies, so more than 90% of credit card-accepting businesses will see their interchange fees reduced by up to 27%); the government will look at ways to remove regulatory barriers for homebuyers from diverse communities seeking access to alternative financing products; and the government plans to implement a standard charging port in Canada, with the aim of lowering costs for Canadians and reducing electronic waste.