Finance Minister Chrystia Freeland will present the federal budget on April 16, as cost-of-living issues continue to dominate Canadian politics.
The spending plan is coming at a time when high-interest rates are putting a damper on the economy and ramping up fiscal pressure on the Liberal government.
At the same time, the political cost of inaction on housing could be high, as rents skyrocket across the country and homeownership remains out of reach for many Canadians.
Dwindling support for the governing Liberals forced the government to shift its focus to housing in the fall with a slew of new — but modest — measures aimed at increasing housing supply.
The Business Council of Canada is calling on Ottawa to "avoid introducing net new spending" to help ease inflation.