The global economy is changing rapidly. Businesses, workers, and governments are operating in uncertain times. Canada's new government is focusing on what it can control at home: strengthening the economy and lowering the cost of living for people.
Canada is building trade and investment partnerships abroad while investing in its own development. The goal is simple: more stable jobs and higher wages. The economic model is shifting from dependence to sustainability. Some results will take time. But people need support now. That is why the government has already introduced tax cuts for millions of Canadians, accelerated housing construction, and protected key social programs.
Groceries and Essentials Benefit
The government is introducing the Canada Groceries and Essentials Benefit, an updated version of the former GST Credit.
Key changes
- ✨ Payments will increase by 25% for five years, starting in July 2026
- ✨ **A one-time payment equivalent to an additional 50% will be made in 2026
What this means in practice
- ⚡ A family of four will receive up to $1,890 in 2026 and approximately $1,400 each year for the next four years
- 🔥 A single person will receive up to $950 in 2026 and approximately $700 each year thereafter
- 👍 In total, more than 12 million Canadians will receive assistance.
Additional measures to curb prices
To curb price increases and avoid passing on additional costs to consumers, the government has adopted a number of measures:
- $500 million from the Strategic Response Fund to support businesses experiencing costs due to supply chain disruptions
- $150 million in a new Food Security Fund under the Regional Tariff Response Initiative for small and medium-sized businesses
- Immediate depreciation of greenhouse costs: producers will be able to fully depreciate greenhouses purchased after November 4, 2025 and put into operation before 2030
- $20 million for the Local Food Infrastructure Fund to support food banks and community organizations
These measures are intended to reduce food production costs, increase domestic supply, and ease the burden on low-income families.
National Food Security Strategy
The government is also developing a National Food Security Strategy. It includes:
- strengthening domestic food production
- improving access to affordable and nutritious food
- introducing unit pricing
- expanding the powers of the Competition Bureau to monitor and ensure fair competition in food supply chains
The goal is not only to respond to the crisis, but to address its root causes.
Comments from government officials
Mark Carney emphasized that in Canada, everyone has a chance to succeed regardless of their background. To this end, the government is building an economy that works for everyone, while reducing costs so that people feel supported today.
Minister of Finance and National Revenue François-Philippe Champagne stressed that the government is acting directly and quickly, combining immediate assistance with long-term reforms.
Agriculture Minister Heath MacDonald said these steps will support the agricultural sector and strengthen the systems that Canadian families depend on every day.
Industry Minister Mélanie Joly noted that investing in competition and stable supply chains means fairer prices at the checkout and real relief for consumers.
Previously adopted measures
The new decisions complement previously adopted measures, including:
- 💸 Lowering the first income tax rate from 15% to 14% as of July 1, 2025.
- 🏠 Eliminating the GST for first-time homebuyers up to $1 million.
- ⛽ Abolition of the federal carbon tax, which has lowered fuel prices.
- 🍎 Permanent National School Food Program.
- 🧾 Automatic calculation of federal social benefits from 2026.
- 📶 Increased competition in the telecommunications and financial sectors.
Conclusion
The Canadian government is combining economic growth with a reduction in the cost of living. The goal is greater confidence, security, and well-being for people today and in the future.