A guaranteed basic income (GBI) could cut poverty in Canada by 40%, according to a new report from the Parliamentary Budget Office (PBO).

Experts estimate that families with the lowest incomes could receive up to $6,100 a year under the program. However, tax changes could be made to finance the GBI, which could reduce incomes for wealthier citizens.

The new forecast is more modest than the PBO’s 2021 report, which claimed that the GBI could cut poverty in half. According to experts, this is because the wages of low-paid workers have not kept pace with the rising cost of living.

The program is estimated to cost $107 billion in 2025.