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Calgary Herald
3 days ago
- Business
- Calgary Herald
John Ivison: The first Carney spending numbers are out, and they're as bad as Trudeau's
Politics is not a zero-sum game where one person's win is automatically another's loss. An economy is not a conserved system, so, in theory, it is possible that a government could reduce taxes, increase spending and balance budgets (if, for example, revenues rise). Article content But it is a theory that is as rare in real life as white peacocks. Article content The Carney government is in the process of legislating a $5-billion-a-year middle-class tax cut, while planning to increase spending on things like the military and housing, and at the same time promising to balance the operating budget in three years. Article content Article content Yet, the Main Estimates, the government's spending plan that was released on Tuesday at the same time as the throne speech, shows no signs of the restraint that will be needed if the government is to meet that last target. Article content Article content This is the first evidence of concrete spending plans since the election and it seems the bureaucracy did not get the memo about the need for fiscal rigour. Article content The prime minister was critical of his predecessor's fondness for distributing cash, saying the Trudeau government spent too much and invested too little. Mark Carney said his government will limit operating-expense increases to two per cent a year, down from nine per cent a year under former prime minister Justin Trudeau, while preserving transfers to provinces and individuals. The Main Estimates suggest that message of restraint fell on deaf ears in Ottawa: total budgeted spending is scheduled to rise 7.75 per cent to $486.9 billion this fiscal year across 130 federal organizations (compared to last year's Main Estimates). The government will ask Parliament to vote on $222.9 billion of spending measures, a 14 per cent increase on last year's estimates. Article content Article content The most egregious spending appears to be on consultants. The estimates reveal that budgetary expenditure by 'standard object' — in this case, 'professional and special services' — are set to hit $26 billion this year, if departments are granted the approvals they are seeking (the estimates are an 'up to' amount; departments could spend less). Article content Article content These numbers require numerous caveats. They include operating and capital spending, as well as transfer payments and contributions to Crown corporations. To add some perspective, payments to seniors (Old Age Security and the Guaranteed Income Supplement) swallow up $86 billion of that number. Some people have suggested the only way to make a meaningful dent in the spending picture is to means test OAS, but Carney has already ring-fenced all transfers. Article content It should also be pointed out that the Main Estimates are not the whole picture. There will be additional 'supplementary estimates' over the course of the year that will likely increase spending further in response to events.
Yahoo
29-04-2025
- Politics
- Yahoo
Misinformation resurfaces about Canadian aid to refugees
"This should make you angry at Liberals," says an April 20, 2025 Facebook post. The post shows a photo of top Liberal Party politicians, including Prime Minister Mark Carney. "The average canada pension recipient gets $1200/mo after working 50+ years," text over the picture says. "The average 'refugee' gets $3874/month after being in Canada for 1 day." The image, which also spread across X and Threads, appears to trace to a TikTok video with more than 500,000 views. Carney won Canada's April 28 election, securing another mandate for the Liberal Party, after replacing Justin Trudeau, who resigned following a decade of power. An open immigration policy was a pillar of Trudeau's government, fulfilling a key campaign promise by resettling tens of thousands of Syrian refugees. But as affordable housing became scarce and rents rose, the policy became unpopular. In 2024, his government announced sharp cuts to immigration (archived here). Polling conducted for local media showed immigration ranked seventh among issues concerning Canadian voters, in a race dominated by US President Donald Trump's tariff war and threats to the country's sovereignty. Carney's Liberal Party said it plans to stabilize permanent resident admissions at less than one percent of Canada's population annually beyond 2027, while maintaining its "global leadership in prioritizing the world's most vulnerable, including human rights defenders and refugees" (archived here). But the figures comparing pension benefits paid to Canadian workers with aid offered to refugees are inaccurate -- and have circulated online for years. Canada's government administers both the Canada Pension Plan (CPP) and the Old Age Security (OAS) pension. In Québec province, workers participate in the mandatory Québec Pension Plan in place of the CPP. Depending on the age a person begins collecting and their average earnings throughout life, Canadians can receive a maximum of $1,433 each month from the CPP, according to the government's website (archived here). As of October 2024, the average CPP pension was $899.67 per month. OAS pensions are separately paid to seniors aged 65 or older who lived in Canada for 10 years after the age of 18, regardless of whether or not they worked (archived here). They are calculated based on income and time spent residing in Canada, with the maximum monthly payment capped at $727.67 for people between the ages of 65 and 74 with a net income less than $142,609. Canadians earning less than $22,056 also qualify for a Guaranteed Income Supplement of up to $1,086.88 (archived here). Combined, the OAS and Guaranteed Income Supplement benefits can reach a maximum monthly payment of $1813.55. Guaranteed Income Supplement payment amounts are reviewed quarterly to ensure that they reflect cost of living increases, as measured by the Consumer Price Index. The government does not decrease payment rates if the cost of living goes down. A person cannot apply directly to Canada for resettlement. Refugees are identified for resettlement by the United Nations Refugee Agency or private sponsors (archived here). These newcomers occupy a different status from asylum-seekers in Canada, who are processed when they ask for protection at a port of entry or after entering the country (archived here). AFP first examined the false assertion that refugees receive $3,874 each month in 2019 and found that the number came from an invoice detailing a one-time start-up allowance and other assistance granted not to a single refugee, but to a family of five. In all provinces except Québec, refugees receive a one-time payment to establish a household, including help to get utilities installed, purchase furniture and an allowance to obtain proper winter clothing (archived here). The funding increased in September 2024 and now ranges from $3,197.89 for an individual to $9,326.16 for a couple with four dependants (archived here). Additional funds of $157.13 per child are also provided to families attending provincial schools. In addition to the start-up allowance, the Resettlement Assistance Program provides refugees with monthly aid, but only for a maximum of one year (archived here). The support is based on the prevailing provincial social assistance rates and is intended to cover basic needs and shelter. In Alberta, for example, a single adult would receive $536 to cover basic needs and $330 for shelter. If the same individual settled in Ontario, they would collect $343 for basic needs and $390 for shelter, with the shelter assistance jumping to $522 in the Greater Toronto and Hamilton Area (archived here). In both provinces the monthly allowance is less than the average CPP payment. The largest monthly allowance for an individual refugee was $1,361 in Prince Edward Island, and the smallest was in New Brunswick at $571 (archived here and here). When actual housing expenses exceed the basic shelter allowance, an addition of up to $200 per month may be provided. Monthly aid increases based on the number of members in a family and may also include special allowances for pregnancy or to aid with a newborn baby. Refugees also qualify for a monthly communication allowance of $78.41 across jurisdictions. Adults get transportation passes in metropolitan areas such as Vancouver, Calgary, Winnipeg and Toronto, while a flat rate of $82.97 is given to those settling in communities that lack public transit. Individuals and groups who privately sponsor refugees can also step in for the government by agreeing to support a refugee or family financially (archived here and here). Fine more of AFP's reporting on misinformation in Canada here.
AFP
29-04-2025
- Business
- AFP
Misinformation resurfaces about Canadian aid to refugees
"This should make you angry at Liberals," says an April 20, 2025 Facebook post. The post shows a photo of top Liberal Party politicians, including Prime Minister Mark Carney. "The average canada pension recipient gets $1200/mo after working 50+ years," text over the picture says. "The average 'refugee' gets $3874/month after being in Canada for 1 day." Image Screenshot of a Facebook post taken April 24, 2025 The image, which also spread across X and Threads, appears to trace to a TikTok video with more than 500,000 views. Carney won Canada's April 28 election, securing another mandate for the Liberal Party, after replacing Justin Trudeau, who resigned following a decade of power. An open immigration policy was a pillar of Trudeau's government, fulfilling a key campaign promise by resettling tens of thousands of Syrian refugees. became scarce and rents rose, the policy became unpopular. In 2024, his government announced sharp cuts to immigration (archived here). Polling conducted for local media showed immigration ranked seventh among issues concerning Canadian voters, in a race dominated by US President Donald Trump's tariff war and threats to the country's . Carney's Liberal Party said it plans to stabilize permanent resident admissions at less than one percent of Canada's population annually beyond 2027, while maintaining its "global leadership in prioritizing the world's most vulnerable, including human rights defenders and refugees" (archived here). But the figures comparing pension benefits paid to Canadian workers with aid offered to refugees are inaccurate -- and have circulated online for years. 2025 pension benefits Canada's government administers both the Canada Pension Plan (CPP) and the Old Age Security (OAS) pension. In Québec province, workers participate in the mandatory Québec Pension Plan in place of the CPP. Depending on the age a person begins collecting and their average earnings throughout life, Canadians can receive a maximum of $1,433 each month from the CPP, according to the government's website (archived here). As of October 2024, the average CPP pension was $899.67 per month. Image Screenshot taken April 28, 2025 of average CCP benefits on the government of Canada's website (Marisha GOLDHAMER) OAS pensions are paid to seniors 65 or older who lived in Canada for 10 years after the age of 18, regardless of whether or not they (archived here). They are calculated based on income , with the maximum monthly payment capped at $727.67 for people between the ages of 65 and 74 with a net income less than $142,609. Canadians earning less than $22,056 also qualify for a Guaranteed Income Supplement of up to $1,086.88 (archived here). Combined, the OAS and Guaranteed Income Supplement benefits can reach a maximum monthly payment of $1813.55. Guaranteed Income Supplement payment amounts are reviewed quarterly to ensure that they reflect cost of living increases, as measured by the Consumer Price Index. The government does not decrease payment rates if the cost of living goes down. Direct support to refugees A person cannot apply directly to Canada for resettlement. Refugees are identified for resettlement by the or private sponsors (archived here). who are processed when they ask for protection at a port of entry or after entering the country (archived here). AFP first examined the false assertion that refugees receive $3,874 each month in 2019 and found that the number came from an invoice detailing a one-time start-up allowance and other assistance granted not to a single refugee, but to a family of five. In all provinces except Québec, refugees receive a one-time payment to establish a household, including help to get utilities installed, purchase furniture and an allowance to obtain proper winter clothing (archived here). The funding increased in September 2024 and now ranges from $3,197.89 for an individual to $9,326.16 for a couple with four dependants (archived here). Additional funds of $157.13 per child are also provided to families attending provincial schools. In addition to the start-up allowance, the Resettlement Assistance Program provides refugees with monthly aid, but only for a maximum of one year (archived here). The support is based on the prevailing provincial social assistance rates and is intended to cover basic needs and shelter. In Alberta, for example, a single adult would receive $536 to cover basic needs and $330 for shelter. If the same individual settled in Ontario, they would collect $343 for basic needs and $390 for shelter, with the shelter assistance jumping to $522 in the Greater Toronto and Hamilton Area (archived here). the monthly allowance is less than the average CPP payment. The largest monthly allowance for an individual refugee was $1,361 in Prince Edward Island, and the smallest was in New Brunswick at $571 (archived here and here). When actual housing expenses exceed the basic shelter allowance, an addition of up to $200 per month may be provided. Monthly aid increases based on the number of members in a family and may also include special allowances for pregnancy or to aid with a newborn baby. also qualify for a monthly communication allowance of across jurisdictions. Adults get transportation passes in metropolitan areas such as Vancouver, Calgary, Winnipeg and Toronto, while a flat rate of $82.97 is given to those settling in communities that lack public transit. Individuals and groups who privately sponsor refugees can also step in for the government by agreeing to support a refugee (archived here and here). Fine more of AFP's reporting on misinformation in Canada here.
Yahoo
19-04-2025
- Business
- Yahoo
3 Mistakes That Can Reduce Your Retirement Income
Written by Puja Tayal at The Motley Fool Canada Retirement can be scary as your active source of income stops, and you have to tackle inflation and rising medical expenses with your retirement pool. At such times, if retirement savings fall in a bear market, investors could make the mistake of withdrawing their investments. An outright withdrawal from the market is not the solution, as you may make temporary losses permanent. If you are already retired, you probably have a bigger pool of income-generating stocks. If not, then you could be in for a negative surprise. When planning your retirement portfolio, your asset-allocation plays an important role. Allocation to low-volatility dividend stocks increases, and that toward highly volatile stocks reduces. A risky stock may do well in a growing economy. However, it may lose value in a downturn. Hence, it is suggested you invest only the amount you can afford to lose in volatile stocks. Avoid investing your retirement savings in BlackBerry (TSX:BB), Cineplex (TSX:CGX), Air Canada (TSX:AC), and Dye & Durham. These stocks have shown small bouts of high growth, but that was not sustainable because of the high-risk nature of their business. BlackBerry has been struggling to grow its revenue, depending on its QNX royalty backlog that kept piling up because of weak automotive demand. It couldn't revive even in a growing economy, making a weak economy an even tougher environment to generate revenue growth. Air Canada is a stock to steer clear of because of the capital-intensive nature of the airline industry. While the airline has generated strong profits and revenue due to a rise in air travel demand and low supply, the demand is normalizing. The wafer-thin margins of Air Canada do not support dividend payments and limit the stock price upside. Cineplex is recovering from the pandemic, but the over-the-top (OTT) trend has hit the secular growth of theatres. Dye & Durham's professional workplace management software is an attractive offering. However, clashes between the management and shareholders have diluted its return potential. The above examples of volatile stocks give you a fair idea of why they may not be good for retirement savings. The Registered Retirement Savings Plan (RRSP) is designed for retirement savings, but its withdrawals are taxable. Instead of relying completely on RRSP withdrawals, consider dividing your retirement investments between RRSP and a Tax-Free Savings Account (TFSA). The TFSA withdrawals are tax-free and do not affect your Old Age Security (OAS) pension and Guaranteed Income Supplement (GIS) payouts, which depend on your annual income. RRSP withdrawals are added to your annual income and can lead to OAS clawback. Many in their 30s and early 40s delay retirement planning till the end. And when retirement is upon you, you are out of options and have to take what is left. There is a misconception that retirement planning could take away a large part of your active income. That is not the case. Investing only $200 a month in a dividend-reinvestment plan (DRIP) of two different stocks that grow their dividends can build you a sizeable retirement income, which will be unaffected by the economic crisis. Telus (TSX:T) is a good dividend stock to build a retirement income. It offers a DRIP, grows its dividend by an average annual rate of 7%, and has a yield of 7.75%. The stock has declined to its nine-year low due to a cyclical downturn. Even at that time, it continued to grow its dividends. If you are nearing retirement, you could consider investing $20,000 and buying 963 shares of Telus, which can give $1,546 in annual dividends. The amount will be higher since the company grows dividends semi-annually. Assuming the company continues to grow its dividend by 6% annually, your retirement income can fight inflation. Moreover, the downside of Telus stock is limited as it trades near its multi-year low. Your $20,000 will grow in the long term as the telco monetizes on the 5G opportunity. The post 3 Mistakes That Can Reduce Your Retirement Income appeared first on The Motley Fool Canada. The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now. The Top Stocks that made the cut could produce monster returns in the coming years, potentially setting you up for a more prosperous retirement. Consider when "the eBay of Latin America," MercadoLibre, made this list on January 8, 2014 ... if you invested $1,000 at the time of our recommendation, you'd have $20,697.16* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*. See the Top Stocks * Returns as of 3/20/25 More reading Best Canadian Stocks to Buy in 2025 Market Volatility Toolkit 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube The Motley Fool has positions in and recommends Dye & Durham. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned. 2025 Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Why the future of Old Age Security is making seniors anxious this election
For seniors, government pension plans are a top priority as Canadians live longer and workplace pensions become a rarity and no program is causing more anxiety than Old Age Security. Old Age Security (OAS) offers seniors a maximum of $727.67 per month for Canadians aged 65 to 74, with maximum monthly payouts jumping to $800.44 per month at age 75. The program has been beneficial for seniors looking to retire. A recent survey from Bloom Finance shows that 61 per cent of Canadian seniors rely on OAS and the Guaranteed Income Supplement (GIS) as their main source of income in retirement, while 46 per cent of respondents called it their most helpful relief measure in retirement. Despite the success of the OAS retirement subsidy for seniors, there remains angst when it comes to its future. The Canadian Association of Retired Persons called the pension plan a 'lifeline under threat' earlier this month as governments might consider changes to cut costs to pay for spending promises on defence and housing. 'It is the first place the government will look for savings — threatening Canadian seniors' ability to live with dignity in retirement,' CARP wrote in a statement. 'OAS is more than a monthly cheque. It's a promise — a promise that Canada will protect its older adults from poverty and neglect. CARP is demanding that this promise be kept.' In 2012, a report from the parliamentary budget officer (PBO) found that OAS benefits are sustainable in the long term without any additional taxpayer help, but some are still calling for changes to the payments. In October, Ben Eisen, a senior fellow with the Fraser Institute, suggested a more targeted approach for seniors who struggle financially. He also proposed increasing the minimum age to 67. 'Spraying almost the entire demographic with a firehose of scarce taxpayer funds is difficult to justify on equity grounds,' he wrote in a report. 'Any increase to OAS benefits would be deficit-financed and the cost would fall on the shoulders of working-age Canadians who must pay the interest on the resulting debt.' Eisen also notes that by 2022, 16 of the 22 high-income Organization for Economic Co-operation and Development (OECD) nations had already made similar changes or were considering those changes. The federal government has already tried Eisen's idea. In 2012, the Harper government announced it would increase the minimum age requirement for OAS payments from 65 to 67, a move that was quickly reversed in 2016 under the Trudeau government. Conservative leader Pierre Poilievre, who voted in favour of Harper's motion in 2012, is now looking to court the senior vote and has promised to maintain the status quo when it comes to OAS. He has also pledged higher thresholds for tax-free income among seniors and allowing seniors to contribute to their RRSPs until age 73, up from 71. 'These are welcome wins for seniors,' Anthony Quinn, CARP COO, said in a report. 'It's the first sign we've had in this campaign that the parties are listening to CARP and talking to seniors.' In 2022, the Liberals increased OAS payments by 10 per cent for Canadians over the age of 75, but voted against a $16-billion bill from Bloc Québécois that would've made the same increase for those under the age of 75. The bill also had the support of the Conservatives and NDP. The Liberals have promised changes to the GIS and the Registered Retirement Income Fund meant to help seniors, but have yet to mention their plan for the OAS. Leaders pitch financial incentives to boost the skilled trades Why energy producers are lukewarm on 'energy superpower' plan The NDP, meanwhile, are promising to boost all seniors out of poverty through the GIS. The Liberals are promising $15,000 for mid-career workers in priority sectors to learn new skills needed for a changing workforce. The NDP is promising to maintain the federal capital gains tax rate and reinvest the money on universal pharmacare, rent control and grocery price caps. The Conservatives are promising to crack down on scammers by forcing mandatory scam detection systems on banks and telecoms, a 24-hour delay on high-risk transaction on seniors' accounts, and targeting executives who allow scams to continue. What you need to know about the Liberals' promise to make Canada a 'leading energy superpower' Jason Heath: What the federal election platforms could mean for your pocketbook Carney proposes to speed up military spending, change defence-procurement strategy • Email: bcousins@
