As the federal government prepares to unveil its new budget next week, millions of Canadians are anxiously waiting to see whether it will bring any real relief from the growing cost-of-living crisis that has gripped households across the country.
For Aneta Wozniak, a single mother living in downtown Toronto, each day is a balancing act between rent, food, and bills. Despite working full-time and running a small cake-baking business on the side, she says she’s still falling behind.
“It’s a huge challenge to live in downtown Toronto,” Wozniak said. “With one income, it’s not enough to pay rent, buy food and pay my bills. Every day is so stressful.”
Wozniak says she often picks up extra shifts but still can’t cover her full rent. “My one income is not enough for me and my daughter. But I am doing my best,” she said, adding that eviction is a constant worry.
Rising costs and household debt
Statistics Canada reports that nearly half of all Canadians say rising living costs are hurting their ability to meet daily expenses. Food prices in September were up 4% year-over-year, following a 3.5% increase in August, continuing a trend of stubborn inflation in essential goods.
Meanwhile, household debt has climbed to record levels. The ratio of household debt to disposable income now sits at 173.9%, meaning Canadians owe $1.74 for every dollar they earn after taxes. Financial experts warn that this leaves families increasingly vulnerable to higher interest rates and unexpected expenses.
Experts urge caution and realistic expectations
According to Josh Sheluk, a portfolio manager at Verecan Capital Management, financial strain is becoming widespread across income brackets. “In all of the financial planning work I’ve done over the past six to 12 months, it’s more evident today that budgets are being squeezed than at any point in my career,” he said.
Sheluk says he’ll be watching next week’s budget closely for changes to income, corporate, and sales taxes, as well as potential rebates for skilled trades and personal support workers — areas that could offer modest relief.
Still, he cautions that few measures in a single budget can dramatically change household finances overnight. “It’s unrealistic to expect anything in the budget to take you from financial despair to financial success,” he said.
Government promises and tough trade-offs
Prime Minister Mark Carney has already hinted at several affordability initiatives, including automatic benefit programs, continued support for the national school food program, and lower travel costs for families during the holidays. However, Carney has also warned that the upcoming fiscal plan will require “sacrifices” to maintain stability amid ongoing economic uncertainty.
Sheluk says the challenge for Ottawa will be finding the right balance between offering support and avoiding measures that could reignite inflation. “We all want the budget to be economically stimulative,” he said, “but there’s a limit to how stimulative it can be without making inflation worse.”
For families like Wozniak’s, that balance can’t come soon enough. “Every dollar counts,” she said softly. “Even a small bit of help would mean the world right now.”