In a significant move, the Bloc Québécois has tabled a motion for Bill C-319, proposing a 10% increase in Old Age Security (OAS) payments for seniors aged 65 to 74. This motion has passed, but it comes with a caveat: the Trudeau government faces pressure to approve it by October 29, with threats of triggering an election if it does not [64704d3c].
Public sentiment appears to be in favor of the increase, with a recent poll indicating that 79% of Canadians support the OAS enhancement. However, the poll did not provide information regarding the financial implications of such an increase [64704d3c]. The Parliamentary Budget Officer, Yves Giroux, estimates that the proposed increase would cost over $3 billion annually, accumulating to a staggering $16.1 billion over five years [64704d3c].
This financial burden comes at a time when the Trudeau government is already anticipating $20 billion deficits for the next five years, alongside projections of over $400 billion in new debt by the fiscal year 2028/29. Furthermore, the interest costs on federal debt are expected to reach $54.1 billion in 2024/25, raising concerns about the sustainability of such expenditures [64704d3c].
Currently, the OAS program supports upper middle-income seniors, with individuals earning up to $148,451 eligible for benefits. This broad eligibility has led to discussions about the targeting of OAS payments and whether they adequately serve those most in need [64704d3c].
The article emphasizes that Canadians will ultimately bear the financial burden of an expanded OAS, highlighting the need for a thorough understanding of the costs involved in such policy changes. As the government navigates these fiscal challenges, the implications of the proposed OAS increase will be closely monitored by both policymakers and the public [64704d3c].