Federal Budget: Investing in the Canadian Economy

Nathan Chick

Canada’s economy is emerging from the COVID-19 pandemic only to find new challenges in growth compared to our global neighbours. The Federal Budget 2022 is investing in all-new programs to help Canada catch up in the race for growth on the world stage. This article from Mentor Works highlights the fundamental changes Canadian woodworking businesses should be aware of. Canada is facing new challenges in supply chains and logistics that are causing delayed delivery of Canadian goods both internally and externally. Therefore, the government has focused on infrastructure and supply chain programs to mitigate these challenges.

Growth for Canadian Businesses

  • $15 billion over the next five years towards establishing the Canada Growth Fund (CGF), which will act as a public investment vehicle at arms-length from the federal government. The CGF will attract private sector investment to achieve crucial policy goals such as the following:
    • Reducing emissions and reaching climate goals
    • Improving exports and growth in low-carbon initiatives as well as generating new technologies
    • Accelerating supply chains in critical industries
  • $396.8 million towards high-frequency railway options that will branch Toronto and Quebec to reduce travel times between these two thriving economies
  • $16 million through the Jobs and Growth Fund towards long-term investments that will support the growth and efficiencies of the PEI potato industry and supply chain

Improving Supply Chains

  • $450 million over five years for the National Trade Corridors Fund, which will help reduce barriers to the movement of goods across Canada via transportation networks
  • $136.3 million over five years for government programs that will work to improve the use of data for supply chain efficiencies
  • $16.9 million over five years to streamline cargo processes by removing unnecessary red tape

Innovation Clusters

$750 million will be allotted to the Canada Global Innovation Clusters to continue funding innovation. This funding will be used to expand support across the nation, increase collaborations that align with national priorities, and address key Canadian disruptions from climate change and supply chain issues.

Reducing Emissions

  • $2.6 billion over five years for a new carbon capture, utilization, and storage (CCUS) investment tax incentive will be created to help with the rapid adoption of carbon capture technologies and systems to encourage a faster transition to lower emissions for the country as a whole. The incentive will represent the following:
    • 60% for CO2 capture equipment acquisition for direct air capture projects
    • 50% for investment in equipment to capture CO2 in all other CCUS projects
    • 37.5% for investment in equipment for transportation, storage, and use

Job Opportunities

The Canadian government is also focused on investing in the jobs and opportunities for Canadians looking to improve their skills and drive the labour force.

  • $84.2 million over four years for the Union Training and Innovation Program to assist over 3,500 apprentices from underrepresented groups to begin and scale up their careers in skilled-trades positions
  • $272.6 million over five years to assist with securing and implementing employment opportunities for workers with disabilities in Canada by making workplaces more accepting and accessible.

Mentor Works streamlines the government funding process through optimized processes and resources. Businesses are paired with an experienced team of professional grant writers who complete each stage of the funding process.

Nate graduated from Brock University with a Bachelor of Arts in Business Communication. Nate is fascinated by emerging communication platforms and uses his curiosity to bridge these platforms with new opportunities. Nate’s goal is to use communications to educate Canadian businesses about government funding opportunities.

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