February 2, 2026
RED FM News Desk
Canada’s parliamentary budget watchdog says Ottawa’s plan to boost the GST credit and deliver a one-time payment to Canadians will cost an estimated $12.4 billion over five years—slightly more than the federal government initially forecast.
In a report released Monday, the Office of the Parliamentary Budget Officer (PBO) estimates the proposed one-time payment will cost just over $3.1 billion this year, while the ongoing 25 per cent increase to the GST credit will add between $1.7 billion and $1.9 billion annually through 2031, totalling about $9.2 billion. The annual estimate is modestly higher than the government’s $8.6 billion projection, though the one-time payment aligns with Ottawa’s figures.
Prime Minister Mark Carney announced the measures last week as part of a package aimed at easing grocery costs for lower-income Canadians. The GST credit, which is paid quarterly to families with low and modest incomes, is expected to reach more than 12 million eligible Canadians under the expanded program.
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