As the federal government prepares to reveal its budget next month, Canadians are concerned about what it may bring
With super-high levels of borrowing and millions of Canadians having relied on government support over the past year, the federal budget is more highly anticipated than usual.
What will it mean for Canadian households and businesses? Will taxes need to rise to bring down the deficit? What platitudes will be included, given that it’s likely to be an election year?
These questions and more are playing on the minds of millions of Canadians ahead of the April 19 budget according to a new survey from the Angus Reid Institute.
Short-term fears include job losses in their household; more than half of respondents are worried about this.
But long-term issues are also paramount with one in three respondents concerned whether they will have enough saved for their retirement and less than four in ten believe they will live as well as their parents’ generation.
One third of Canadians say that they are worse off now than they were 12 months ago with 47% saying things are about the same and 16% better off.
While the share of those that say they are worse off has not significantly risen year-over-year, the trend from 2018 to 2020 of growing percentages saying they are better off has halted.
The wealthiest Canadian households are more likely to say that they have done better over the past 12 months with 45% of those in the lowest income group saying they are worse off.
The worst perceived effects have been felt in Alberta and Saskatchewan, where at least two-in-five (40%) say they are worse off, while residents in Quebec are least likely to say this of their own situation.
One in five remain pessimistic
Although there are plenty of reports suggesting better times ahead for the Canadian economy, this optimism isn’t universally shared.
More than one in five respondents are pessimistic about their finances over the next year, just short of the 24% who are expecting increased prosperity.
The share of people who are concerned about someone in their household losing their job is slightly higher than the share who are not; more than 7 in 10 people say they are stressed about money at least sometimes; and a similar share says they have too much credit card debt.
Government focus
Asked where the government should be focusing:
- 27% said on its eyewatering debt
- 33% said ensuring the tax system is fair and progressive
- 40% who said promoting jobs and economic growth in their area
- 43% who said improving social programs (with investment in health care, pensions, and child care)
- 43% who said controlling inflation in areas such as real estate and food
