Mr. Chair, it is a great pleasure to be with you this evening and with my colleagues, whom I truly appreciate. We will be spending a wonderful evening together.
I want to begin by thanking all the deputy ministers who are with us this evening. This is an important evening during which I will have an opportunity to address this important committee of the whole. I would also like to thank all the senior officials who helped prepare for this evening, as well as my opposition colleagues, who play an important role in our democracy by asking questions, as they will this evening.
I would like to speak specifically to some of the spending measures outlined in the main estimates that are helping to support Canadians during this period of great economic volatility while preparing us for the opportunities available to us as a nation.
From increasing federal transfers that uphold the core Canadian values of equal opportunity and social stability, to helping Ukraine in its fight against Russia's war of aggression and investing in the infrastructure projects that transform our communities for the better, our government is delivering the change Canadians want and deserve. I look forward to outlining these measures further as they pertain to building a greater, more inclusive and more robust economy for everyone.
Our government is committed to helping the provinces and territories deliver the social programs and supports that Canadians need to maintain their financial, personal and social well-being, no matter where they live in our great country.
That is why—and I know my Conservative colleagues will be very interested in this part of my speech—the Canada health transfers will increase by $2.6 billion. This will ease immediate pressures on health care systems across Canada and ensure that more people can get to the hospital, receive emergency care and see a doctor quickly and efficiently. This increase reflects the federal government's February 2023 commitment to a minimum growth rate of 5% until 2027‑28.
The Canadian social transfer, which I know my Conservative colleagues care a lot about as well, will increase by $507 million as a result of the legislated 3% annual growth rate. What we call the Canada social transfer is intended to support three broad areas of social programming plus post-secondary education, social assistance and social services, as well as early childhood development, and early learning and child care. These all contribute to improving the social determinants of health from coast to coast to coast.
Together, these transfers will promote more equity, boost social inclusion and cohesion and support a comprehensive safety net so vital to the Canadian way of life. My colleagues on this side of the house, the Liberal government, have always been there for Canadians. I know Canadians watching know we have their backs.
I think we can all agree that people in one part of the country should not have to pay more to receive the same basic services compared to their fellow Canadians in other parts of the country. This is all about fairness. It is why we have equalization and territorial formula financing, which, as members well know, provides funding from federal revenues to provinces and territories with a weaker ability to raise revenues, ensuring these regions can provide reasonably comparable services at reasonably comparable levels of taxation. The territorial formula financing also takes into account the higher cost of delivering services in our beloved north.
We are increasing fiscal equalization by nearly $970 million and territorial financing by almost $330 million so we can continue promoting equity across our great nation.
Another increase worth mentioning is the allocation of $200 million to the World Bank's Ukraine relief, recovery, reconstruction and reform trust fund, which will assist the country in its courageous fight against Russia's illegal invasion. This amount is part of Canada's contribution through the G7's extraordinary revenue acceleration loan initiative for Ukraine. It will be used to support projects, programs and activities that address Ukraine's budget, recovery and reconstruction needs.
Finally, I would like to touch on one important increase in the main estimates, which is to the Canada Infrastructure Bank. It was established to ensure that all Canadians can benefit from modern and sustainable infrastructure through partnerships between the private sector and all levels of government.
Specifically, the federal government can provide up to $35 billion to the Canada Infrastructure Bank to invest in priority sectors, including public transit, green infrastructure, clean energy, broadband access, trade and transportation.
By making this investment, we will build a stronger, more inclusive and more sustainable Canada for all Canadians. I can already see my Bloc Québécois colleagues smiling, because we are united in building a strong Canada. I can see it in their eyes. They are proud to support us as we build a strong Canada together.
Before I conclude, I would like to highlight some crucial measures the new government is taking to make life more affordable while building a single, interconnected and resilient Canadian economy, the one economy that I think everyone in the House and people at home are wishing for.
To make buying a new home easier and to boost the construction of new homes across the country, including in the beautiful Quebec City, the government is eliminating the goods and services tax, what we call the GST, for first-time homebuyers on new homes up to $1 million and reducing the GST for first-time homebuyers on new homes between $1 million and $1.5 million.
This is a great moment for Canada, and I can see how much you appreciate that, Madam Chair, because it is going to help people in your riding as well.
As a result, first-time homebuyers would be able to save up to $50,000 on new homes, and it would deliver $3.9 billion in tax savings to Canadians over the next five years. We should all be very happy to support people who want to buy a new home for the first time, as a new buyer.
In addition, we are putting forward our proposal to reduce the marginal tax rate for the first tax bracket of personal income from 15% to 14% effective July 1, 2025. This will provide much-needed tax relief to nearly 22 million Canadians. Twenty-two million Canadians will be able to benefit from this tax cut, which is important for the middle class.
To make Canada's carbon pricing system more equitable and efficient, the Government of Canada has adopted regulations terminating the federal fuel charge effective April 1, 2025. The government has removed the requirement for provinces and territories to have a carbon price for consumers.
In conclusion, the measures in the main estimates presented before the committee today are an important part of the federal government's plan to put people first and build a single, hyper-connected economy where everyone has a real and fair chance at success. We want to build the strongest economy in the G7.
We are ensuring Canadians receive the health and social services they need to thrive. We are supporting Canadians through the current global challenges we face, by cutting taxes and making housing more affordable. We are catalyzing infrastructure investment and creating well-paying jobs across the country.
Let us be proud. We are the true north, strong and free.