As we head into the end of the year, significant healthcare achievements coincide with major political shifts, creating a complex landscape of progress and uncertainty.
At the 2024 Council of the Federation Meeting, the premiers commended the pan-Canadian Pharmaceutical Alliance (pCPA) for effectively reducing the cost of prescription drugs and saving $4.63 billion annually since April, amid economic challenges. Premiers reaffirmed their commitment to improving health outcomes by recruiting and retaining healthcare workers.
Provincial and territorial premiers also discussed a range of pressing economic issues, including the potential impacts of U.S. President-elect Donald Trump's tariff threats. During the meeting, the premiers shared their support for working with the federal government while seeking greater federal consultation on immigration policy changes.
Amid political turmoil and looming trade tensions, the federal government released its long-awaited Fall Economic Statement (FES), projecting a $61.9 billion deficit for the 2023–24 fiscal year. The announcement comes in the wake of Finance Minister Chrystia Freeland’s resignation, and Liberal MP Dominic LeBlanc becoming the new Finance Minister.
The FES unveiled several key measures aimed at creating safer, healthier, and more inclusive Canadian communities with an investment of nearly $600 million over three years to prevent violence. The $597.9 million investment will be used to prohibit firearms in communities and to continue the government's support to Ukraine by donating prohibited assault-style firearms.
In addition, $90 million over six years, with $20 million ongoing, is allocated to expanding the Sexual and Reproductive Health Fund, and $15 million over three years will support women's organizations to combat gender-based violence. About $7.5 million over four years will power new surveys about sexual and reproductive human rights, while another $15 million for over three years will be used for projects against gender-based violence.
The FES also introduced $26 billion in tax incentives to support Canadian businesses and outlined a plan to attract billions in private and pension fund investments to drive growth and create jobs. There are also proposed investments in community security, including the Canada Community Security Program and a $77.9 million allocation for Canada's Black Justice Strategy to protect Black communities from prejudice and discrimination, while $189 million over five years has been earmarked to boost the Black Entrepreneurship Program.
Freeland’s abrupt resignation has added to the political turmoil within Prime Minister Justin Trudeau’s government. This also triggered widespread reactions across political, provincial, and business sectors. NDP Leader Jagmeet Singh asserted that Trudeau is not providing the leadership Canadians need and hinted at the possibility of a no-confidence vote. Conservative Leader Pierre Poilievre has echoed these sentiments, urging the government either to present their fiscal update or face a non-confidence vote, potentially leading to a "carbon tax election."
Quebec Premier François Legault refused to comment about his confidence in Trudeau, stressing that it is up to Parliament to decide Trudeau's future amid economic uncertainty and Trump’s tariff threats.
Prime Minister Justin Trudeau now faces mounting pressure to resign, with an Abacus Data Poll revealing that one in five Canadians believe that Trudeau should stay in his position, while 67% of the participants think he should resign. The survey also found that the events after the FES have led to a significant increase in Conservative support, showing a 25% lead over the Liberals.
While the FES attempts to paint a picture of resilience, the larger-than-expected deficit and ongoing trade uncertainties raise questions about the government’s ability to navigate an increasingly precarious economic and political landscape.
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