Blog Finance

Budget 2024: How It Will Affect Canadian Immigration

Chrystia Freeland

Canada’s Minister of Finance, Chrystia Freeland, has presented the national budget 2024 to parliament.

Canada publicizes a budget annually that sets the tone for expenses in the coming fiscal year. It plays a vital role in shaping the way life will be for every individual in Canada, including new immigrants.

For instance, the budget summarizes the federal plan for expenses on every national service and offers a view of what the Canadian economy can expect in the coming fiscal year.

Understanding how the government plans to allocate funds is crucial for comprehending the future of Canada’s immigration policies. The 2024 budget, which introduced $53 billion in new expenses, focused on improving accommodation affordability, defense expenses, and productivity in Canada’s labor force to boost the economy. These initiatives are expected to have a direct impact on immigration and related policies.

While immigration expenses were not a significant part of the 2024 budget, there were new expenses and top-ups to existing standards from earlier budgets. These measures are designed to assist new immigrants in finding affordable accommodation and securing employment in key industries. This indicates that the government is actively working to create a favorable environment for new immigrants in Canada.

Inexpensive Accommodation

Leading up to the declaration, Minister Freeland and Prime Minister Justin Trudeau made many declarations about how the national authority intends to assist with the present accommodation situation.

Several of the standards are targeted at millennials and Generation Z, who are usually severely affected by the accommodation expenses in Canada. The statement comprised a Renters Bill of Rights and elevated financing for the existing Apartment Construction Loan program, obtaining $55 billion. The program incentivizes developers to generate more housing and rental accommodations, including student residences and long-term care facilities. This commitment to affordable accommodation is a testament to the government’s dedication to addressing the housing crisis. Additionally, Minister Freeland’s announcement that first-time home purchasers can use $ 60,000 from their RRSPs to buy their first house, nearly twice the past high of $ 35,000, provides a significant boost to those aspiring to own a home.

Minister Freeland announced that, starting from 16 April, first-time home purchasers can use up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to buy their first house. This is nearly twice the previous limit of $35,000. They will also have five years to start repaying the amount. This initiative is expected to make homeownership more accessible for first-time buyers, including new immigrants.

Merging Immigration With Accommodation In Canada

The 2024 budget also reiterates current modifications that Immigration, Refugee, and Citizenship Canada has carried out regarding accommodation depletion.

For instance, the upcoming immigration Levels Plan 2025 to 2027 will, for the first time, also include temporary resident targets. These targets comprise temporary employees and international students. The authority anticipates a decrement of about 60,000 temporary residents over the next three years. This is expected to decrease the request for Canada’s restricted supply of accommodation. This integration of immigration policies with accommodation and employment strategies is a promising step towards a more comprehensive approach to immigration management.

International Certificate Identification

Following up on an initiative attached to the Fall Economic Statement in 2023, the authority has promised to spend $50 million on the International Certificate Recognition program. The 2024 budget indicates that 50 percent of the financing will go to residential buildings to support skilled trades employees in getting the applicable certificates to get employed in Canada or the region they live in.

The other 50 percent of the financing will go to the healthcare industry. The national authority states that this may assist regions and territories in expediting the removal of their blockades to international certificate identification.

This investment develops on the $115 million investment attached to the 2022 budget.

Immigration And Canada’s Economy

The budget provides a comprehensive analysis of how immigration has influenced Canada’s economy. It states that new immigrants have been narrowing the income gap between themselves and non-immigrants in recent years. This indicates that immigration is not only beneficial for new immigrants but also contributes to the overall economic growth of the country.

It states that new immigrants naturally earn less than the average Canadian upon landing; a huge one-time increase in the number of new immigrants has weighed on the federal average revenue and productivity in the short period. Hence, over the most current one-decade period, it took six years for new immigrants to reach the median Canadian revenue; however, by the end of one decade, they exceeded that median revenue by 10 percent.