Thank you very much, Mr. Chair.
I believe Nick is also of Ukrainian descent.
I think maybe one of the things we are all united on is our support for Ukraine, whether you are of Ukrainian descent or not. Thank you for starting there.
Mr. Chair, it's my pleasure to appear before you and members of the committee to discuss Bill C-30, the cost of living relief act, which would deliver targeted tax relief to the Canadians who need it most by doubling the goods and services tax credit for six months.
That would mean up to an extra $234 for single Canadians without children, nearly $500 for a family with two children, and an extra $225 on average for seniors.
This is additional support for roughly 11 million eligible people and families.
And Bill C‑30 is just one element of our new support package. As members of this committee know, Bill C‑31 includes a Canada Dental Benefit and a one-time top-up to the Canada Housing Benefit.
If we pass these two further pieces of legislation, up to half a million children under 12 will be able to go to the dentist. Low-income renters, some of the most vulnerable among us, will receive a little extra breathing room.
These measures are part of our affordability plan, which has already been putting more money back in the pockets of Canadians this year. We've enhanced the Canada workers benefit and we're cutting child care fees in half by the end of the year. In July we increased OAS by 10% for seniors 75 and older, and we doubled Canada's student grants until July 2023.
Mr. Chair, our plan is targeted, fiscally responsible, and supports the most vulnerable Canadians: our lowest-paid workers; low-income renters; families who can’t afford to have their kids see a dentist. And we are doing it in a way that will not pour unnecessary fuel on the fire and allow inflation to become entrenched— something that would make life more expensive for everyone for years to come.
But we cannot compensate every single Canadian for rising costs driven by a global pandemic and by Putin’s invasion of Ukraine. To do so would only make inflation worse. Canadians are smart, and I know they understand that.
And so as Canadians cut back on costs, so, too, will our government. We will do our part to not pour fuel on the fire.
We committed to a $9-billion cut in government spending in our spring budget. Canada does have the lowest deficit this year in the G7. We have the lowest net debt-to-GDP ratio in the G7. Our AAA credit rating was reaffirmed this year by Moody's, S&P and DBRS, and our new targeted inflation relief measures have an incremental cost of just 0.1% per cent of Canada's GDP, an incremental cost of $3.1 billion.
This legislation is about finding a balance between compassion and fiscal responsibility. This support is the right thing to provide to Canadians now, when they need it. Canada can afford to be compassionate to the most vulnerable among us, and we will be.
I'm happy to take your questions now.
As you said, Mr. Chair, we have finance department officials here who can answer questions too.