Canadian Government Releases Federal Budget, Announces $101.4B in Spending
/Finance Minister Chrystia Freeland released the plans of the Liberal Party federal budget for a post-pandemic economic recovery at the House of Commons in Ottawa on Monday.
Cynthia Freeland, finance minister had her first federal budget announcement since the Liberal Party of Canada did not do one last year. She is the first federal female finance minister in Canadian history. Screenshot.
This was the first budget in two years for the Liberal Party. Here are the highlights of the announced budget:
Main highlights:
$101.4 billion over three years in new spending for recovery aid and kick-start a green economy transition
$30 billion over five years and $8.3 billion every year after to create and maintain a national child care program. The goal is a $10-a-day child care service by 2025-2026
$18 billion pledged for Indigenous communities
$17.6 billion towards green recovery — to conserve lands and oceans by 25 percent by 2025 and to help Canada cut emissions to 36 per cent below 2005 levels by 2030.
Extension of pandemic business and income support measures, such as wage and rent subsidies through autumn.
Taxable grants $500 to Old Age Security pensioners aged 75 or older starting on June 2022
A 10 per cent boost for pensioners to maximum OAS benefits 75 and older beginning on July 1, 2022
Deficit
The deficit at $354.2 billion in 2020-21 and $154.7 billion in 2021-2022, expected to drop to $30.7 billion in 2025-2026
Jobs
Extension of the maximum period of employment insurance sickness benefits from 15 to 26 weeks.
A projection of one million new jobs by the end of the year
A $15 federal minimum wage
Other highlights
$4.4 billion to help homeowners with green renovations with interest-free loans of up to $40,000.
$3 billion to help provinces improve long-term care over five years
$2.5 billion towards building and repairing 35,000 housing units
$1 billion towards tourism for festivals and cultural events
A new luxury tax on new cars and private aircrafts worth more than $100,000 and recreation boats over $250,000
$300 million to support underrepresented people-of-colour entrepreneurs.
$236.2 million over five years and $33.5 million every year after for the departments of National Defence and Veterans Affairs to eliminate sexual misconduct and gender-based violence for support survivors and military
Extension of interest-free period for student and apprentice loans in Canada to March 31, 2023, at a cost to the government of roughly $392.7 million in 2022-2023.
