Toronto/IBNS: Canada's 2024 federal budget unveiled by Finance Minister Chrystia Freeland proposes $52.9 billion in new spending over five years, including $8.5 billion in new spending for housing.

Some of the notable funding initiatives and legislative commitments in budget 2024 include housing, defence, tax hike on capital gains, Canada disability benefit, Indigenous communities, small businesses, increase in vaping tax, CBC/Radio-Canada, and Canadian Security Intelligence Service.

The federal government aims to convert 50 percent underused federal offices into homes, using 1,700-plus Canada Post offices across the country to build new homes while maintaining postal services, looking at redeveloping properties and buildings on National Defence lands for military and civilian use.

The budget pledges a $15 billion top-up to the Apartment Construction Loan Program to build 30,000 new homes across Canada to meet housing targets in the housing plan to build nearly 3.9 million homes by 2031.

The next initiative is helping 79,000 students each year at an estimated cost of $154.6 million over five years, aiding them in renting, extending increased grants and interest-free loans, at an estimated total cost of $1.1 billion this year.

Another key intake in the federal budget is funding boost for defence spread out over multiple years.

The budget is also pledging $9B in new money for Indigenous communities, and $5 billion in loans for their participation in natural resource development and energy projects in their territories.

To help cover some of its multi-billion dollar commitments, the government is proposing a tax hike on capital gains, the profit individuals make when assets like stocks and second properties are sold, up from the current 50 percent to two thirds for annual capital gains over $250,000  .

There's still some protection for small businesses. A lifetime capital gains exemption allowing Canadians to exempt up to $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property with the tax-free limit will be increased in June to $1.25 million and will continue to be indexed to inflation thereafter, according to the budget.

Following Parliament's passing of the Canada Disability Benefit Act with a pledge to directly benefit low-income, people with disabilities between the ages of 18 and 64 woud get disability benefits amounting to $200 per month.

Funding of $6.1 billion over six years, beginning this fiscal year has been proposed by Budget 2024 with $1.4 billion per year ongoing, for a new Canada Disability Benefit.Canada Disability Benefit Act would come into force in June 2024 and for payments to start in July 2025.

Scaling back carbon tax rebates for small businesses, the Federal government  budget proposes to return fuel charge proceeds from 2019-20 through 2023-24 to an estimated 600,000 businesses with 499 or fewer employees through a new refundable tax credit. This would deliver $2.5 billion directly to Canada's small- and medium-sized businesses.

Aiming to cut the number of people smoking and vaping, the Liberals are raising revenues on tobacco and smoking products hoping to increase federal revenue by $1.36 billion over five years starting in 2024-25.

Effective July 1, vaping excise duty rates would increase by 12 percent with a hope to bring in $310 million over five years, starting in 2024-25.

CBC/Radio-Canada is getting a boost this year with a promised $42 million more in 2024-25 for CBC/Radio-Canada for "news and entertainment programming" ensuring Canadians across the country, including rural, remote, Indigenous and minority language communities, have access to independent journalism and entertainment.

To enhance its intelligence capabilities and its presence in Toronto, The Canadian Security Intelligence Service would receive $655.7 million over eight years, starting this fiscal year,

(Reporting by Asha Bajaj)