Ottawa – Deputy Prime Minister, Chrystia Freeland talked on increasing productivity and boosting innovation to create more good jobs. She said:
Good morning everyone.
I am going to start by talking about economic growth and innovation and the new Canadian Entrepreneurs’ Incentive.
Then I am going to turn it over to Minister François-Philippe Champagne—he is going to talk about some investments we are making to boost innovation and productivity—and then to Minister Anand who is going to talk about how we are cutting red tape.
Our budget is about ensuring fairness for every generation of Canadians, and growing the economy in a way that is shared by everyone.
The Canadian economy is outperforming private sector expectations: 90,000 jobs were created in April and more than 1.3 million more Canadians are employed today than before the pandemic.
Additionally, inflation fell from 2.9 per cent in March to 2.7 per cent in April. For a fourth consecutive month, inflation in Canada is within the Bank of Canada’s target range. It is currently at its lowest level in three years and wage growth has outpaced inflation for 15 months now.
But to make sure the Canadian economy continues to add good jobs—especially high-paying jobs—we need to invest in the technologies and skills that are critical to increasing productivity, fostering innovation, and attracting more investment to Canada.
For entrepreneurs, and to those hoping to start a business one day, we are creating the new Canadian Entrepreneurs’ Incentive to create a more generous incentive, targeted very specifically at start-ups.
The $2 million Canadian Entrepreneurs’ Incentive, an entirely new program, will be available to founding investors in key sectors, where the company has been their focus for at least five years. This incentive, combined with our increased $1.25 million lifetime capital gains exemption, available to all Canadian businesses, will give entrepreneurs a combined total and partial exemption of at least $3.25 million when selling all or part of a business—encouraging Canadian entrepreneurs and innovators.
When these tax fairness measures come into force on June 25th, Canadian entrepreneurs with capital gains of up to $6.25 million will be in a better tax position than they were previously.
This will ensure entrepreneurs get to keep a bigger share of the profits from the risks they take and the hard work they do—and have more money to reinvest into their next venture.
Through this year’s budget, our government is making it easier for new businesses to start-up and for existing businesses to grow.
We know that Canadian entrepreneurs need venture capital to start-up, scale-up, and become the next generation of Canadian anchor companies—but not enough Canadian entrepreneurs have access to investment they need to grow.
Since 2016, our government has invested $821 million through the Venture Capital Catalyst Initiative, delivering support to over 300 companies across Canada. And we’re not stopping there.
An additional $200 million, over two years, in this year’s budget will strengthen Canada’s venture capital ecosystem by co-investing with the private sector, discovering and nurturing the next generation of Canadian companies.
With measures such as these, our government is focused on creating good-paying jobs, and expanding the capacity of the Canadian economy, today and for the next generation.
Our plan is about unlocking the door to the middle class for more Canadians, particularly Millennials and Gen Z, and renewing the promise of our great country.
Thank you very much.