Rising senior advantages this summer time and past may value $ 10.7 billion – Victoria Information

Increasing the senior benefits this summer and beyond could cost $ 10.7 billion

Parliament’s Budget Officer estimates that the Liberals’ plan could be cheaper than expected

Parliamentary Budget Commissioner Yves Giroux waits outside the Commons Finance Committee on Parliament Hill in Ottawa on Tuesday, March 10, 2020. THE CANADIAN PRESS / Adrian Wyld

The Parliamentary Budget Commissioner estimates that the Liberals’ plan to send lump sum payments to seniors over 75 this summer and then top up their retirement pensions will cost a little less than the government estimates.

The April budget estimated the total cost of the measures at just over $ 12 billion over five years before taking into account tax revenue, which would offset a small portion of total spending.

The Budget Bureau estimates the gross cost in a report today at $ 10.7 billion.

Spending begins this summer with the government’s planned one-time payment of $ 500 in August to every senior who will be 75 years of age or older by summer 2022.

And next summer, Liberals are also proposing a 10 percent increase in old-age benefits for those over 75, which the budget estimates would bring an additional $ 766 in benefits to 3.3 million retirees.

The budget estimated the net cost of the measure, which once took into account additional tax revenue, at nearly $ 10.7 billion, while the Budget Officer’s report put it closer to $ 9.9 billion.

—The Canadian press

RELATED: Seniors Will Receive Up To $ 500 In Promised COVID-19 Emergency Aid In Early July

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