Ottawa's GST relief plan estimated to cost $12.4 billion over six years

The Parliamentary Budget Officer estimates the federal plan to raise the GST credit and offer a one-time payment will cost about $12.4 billion over six years; the government maintains its own estimate of $11.7 billion. The measures include a 25% increase to the GST credit phased in from July 2026 and a one-time payment equal to 50% of the credit.

The parliamentary budget officer reports that the federal plan to temporarily boost the GST credit and issue a one-time payment will cost about $12.4 billion over six years. Prime Minister Mark Carney announced a 25 per cent increase to the GST credit phased in over five years beginning July 2026 and a one-time spring payment equal to 50 per cent of the credit. The PBO says the one-time payment will cost more than $3.1 billion this year and that the annual increases will total roughly $9.2 billion through 2031. The government has defended its own projection that the package will cost $11.7 billion over six years. Key figures and recent steps: - The PBO estimates the package will cost $12.4 billion over six years. - The one-time payment is estimated by the PBO to cost more than $3.1 billion in the current year. - Annual increases are estimated by the PBO at $1.7 billion to $1.9 billion per year through 2031, about $9.2 billion in total. - The government states the total program cost is $11.7 billion over six years and had projected $8.6 billion for the annual increases. - More than 12 million Canadians are expected to be eligible for the GST credit; the House of Commons fast-tracked enabling legislation and it still requires Senate debate and a vote. Summary: The PBO's estimate is slightly higher than the government's projection, with the largest near-term cost being the one-time payment this year. The House of Commons moved to fast-track the bill and it is expected to complete remaining House stages soon, but Senate debate and a Senate vote are still required before the measures become law.