This budget has over $101 billion in new spending over the next three years, and will add a deficit of $154.7 billion this year, on top of the $354.2 billion deficit from 2020-21. Since this is the first budget in two years, it encompasses that huge deficit, and the projection for the federal debt is for it to surpass $1.4 trillion by 2025-26. That’s billions, with more zeroes added to the end, an amount that is very difficult for most people to even imagine. What these huge dollar amounts mean is that there are going to be debt payments required by this country for many, many years to come, both current and coming generations.
The largest contributor is almost $30 billion over five years to drive down fees in licensed daycares with the goal of reaching $10 a day by 2026. That money is on top of already planned child-care spending. There is also more money for broadband infrastructure and $7 billion in cash, financing and advice to help companies adopt and invest in new technologies, which is intended to address ongoing concerns about the country s productivity gap. All that extra spending will send the deficit to $154.7 billion this fiscal year, one year after a record-smashing $354.2 billion deficit induced by the pandemic that sent the national debt above $1 trillion.
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Manitoba business organizations are applauding the federal budget for the expansion of specific supports to help the businesses ride out the pandemic into recovery.
The budget outlines $12 billion in business supports which includes the expansion of the federal wage and rent subsidies as well as the Canada Recovery Benefit to help carry workers not covered by Employment Insurance.
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Chuck Davidson, president and CEO of the Manitoba Chamber of Commerce, also liked the provision for retraining people in the budget.
Eventually, someone has to pay for all of this spending
Author of the article: Licia Corbella
Publishing date: Apr 20, 2021 • 3 hours ago • 5 minute read • Prime Minister Justin Trudeau, left, arrives with Deputy Prime Minister and Minister of Finance Chrystia Freeland as she prepares to table the federal budget in the House of Commons in Ottawa, on Monday, April 19, 2021. Photo by THE CANADIAN PRESS/Justin Tang
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Apparently the promised $100 billion in stimulus infrastructure spending wasn’t enough for the federal Liberal government.
Despite warnings by numerous economists, think tanks and even Canada’s Parliamentary Budget Officer (PBO), Chrystia Freeland’s first federal budget, released Monday, promises an extra $101.4 billion on infrastructure spending over three years and that poses a grave risk to Canada’s fiscal health by massively increasing our debt and by pumping too much printed money into the economy.
OTTAWA - Finance Minister Chrystia Freeland tabled the 2021 federal budget in the House of Commons on Monday. Here are some highlights from her speech, as well as quotes from opposition leaders.