February 3, 2026
RED FM News Desk
Ottawa’s new grocery rebate aimed at easing affordability pressures will cost an estimated $12.4 billion over five years, according to Canada’s parliamentary budget officer.
The estimate comes days after Prime Minister Mark Carney unveiled the Canada Groceries and Essentials Benefit, a key plank in the federal government’s response to soaring food costs. Grocery prices have risen more than 30 per cent since 2020, Statistics Canada data show.
The PBO says the one-time top-up to the GST credit will cost more than $3 billion in its first year alone. Ongoing increases to the benefit are expected to add between $1.7 billion and $1.9 billion annually through 2031.
In its first year, the program will boost annual GST credit payments for a family of four from roughly $1,100 to $1,890, while eligible individuals will see payments rise from about $540 to $950.
Beginning in 2026–27, the GST credit will be permanently increased by 25 per cent for five years, lifting annual payments to about $1,400 for families and roughly $700 for individuals. More than 12 million Canadians are expected to qualify.
While Conservatives have signalled support to fast-track the legislation, party officials continue to argue the rebate fails to address the underlying drivers of high food prices.
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