Ottawa’s plan for GST relief set to cost $12.4 billion over 5 years, PBO says

By Nick Murray The government’s budget watchdog said Monday it expects the federal government’s plan to increase the GST credit and offer a one-time payment to Canadians will cost Ottawa an estimated $12.4 billion over five years. The number, released by the Office of the Parliamentary Budget Officer — is slightly higher than Ottawa’s initial projection. Prime Minister Mark Carney promised last week new measures to help lower-income consumers deal with the high cost of groceries, including a 25 per cent hike to the GST credit over the next five years and a one-time payment in the spring worth 50 per cent of the credit. The PBO report estimates the one-time payment will cost more than $3.1 billion this year, while the annual increases will cost between $1.7 billion and…

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