Prime Minister Justin Trudeau listens to Deputy Prime Minister and Minister of Finance Chrystia Freeland speak virtually during a news conference in Ottawa, Wednesday, March 3, 2021. THE CANADIAN PRESS/Adrian Wyld

Prime Minister Justin Trudeau listens to Deputy Prime Minister and Minister of Finance Chrystia Freeland speak virtually during a news conference in Ottawa, Wednesday, March 3, 2021. THE CANADIAN PRESS/Adrian Wyld

Liberals to unveil federal budget on April 19, Freeland says

It’s expected to outline Liberals’ plan to spend between $70 billion and $100 billion over the coming years

The federal government will release a highly anticipated budget in about four weeks, giving Canadians a detailed accounting of pandemic spending and how the Liberals plan to spend billions more on the road out of COVID-19.

Finance Minister Chrystia Freeland announced Tuesday the federal Liberals will table a budget on April 19.

It will be the first federal budget in more than two years, after the government opted not to introduce one in 2020 as the COVID-19 pandemic took hold in Canada.

It will also be Freeland’s first budget as finance minister; she took on the portfolio last summer following Bill Morneau’s resignation.

Freeland said the government went into the pandemic with strong finances, which allowed it to provide unprecedented support to Canadians.

“We will continue to do whatever it takes to support Canadians and Canadian businesses,” Freeland told the House of Commons Tuesday.

“And we have a plan for jobs and robust growth.”

The budget is expected to provide a full accounting of all government spending through the pandemic, which has sent the deficit for the fiscal year to almost $400 billion.

It is also expected to outline the Liberals’ plan to spend between $70 billion and $100 billion over the coming years in fiscal stimulus to help the economy recover.

Goldy Hyder, president of the Business Council of Canada, said in a statement that the government needs to provide economic hope to Canadians with an end in sight to the pandemic.

“To build confidence, the federal government must present a comprehensive and credible plan that spurs investment, private-sector job creation, and long-term economic growth,” he said.

The government will need to get the support of at least one major opposition party to pass its budget. Failure would mean the government falls and would almost certainly provoke a federal election.

Conservative Leader Erin O’Toole, in a statement, said the government has left far too many Canadians behind during the pandemic.

He contrasted Liberal policies with those his own party would unveil, saying he would focus on “growth in every sector of the economy and in every part of the country.”

The government has previously said this year’s budget will include measures to create a national child-care system, invest in skills training and help green the economy.

Additional measures pitched by departments have faced a simple question: how much economic growth can this buy?

The budget is likely to include spending on traditional areas like infrastructure, including for public-sector projects that could act as a catalyst for private projects, said Deloitte Canada chief economist Craig Alexander.

But he also noted that spending on social programs could also provide an economic boost in the short and long term, pointing specifically to child care.

By Alexander’s estimates, governments receive between $1.50 and $6 for every dollar invested in child care, suggesting it can help break down economic barriers by raising labour-force participation rates for parents, and mothers in particular.

“I don’t think the economy needs the government to just go and spend money on things that would just accelerate economic growth in 2021,” Alexander said in an interview.

“What we need is strategic investments that will provide a boost to the economy over the medium to long term.”

The budget will be the first one since March 2019 after the government opted not to introduce one in 2020, pointing to the uncertainty the pandemic had caused to the domestic and global economic outlook.

Freeland asked the Finance Department in the fall to detail the difference between a budget and a fall economic statement.

A footnote in the responding briefing note, a copy of which The Canadian Press obtained under the Access to Information Act, said “while a budget is typically presented every year, the government is under no obligation to do so.”

Freeland delivered an economic statement in late November, which pegged the deficit at $381.6 billion this year, but closing in on $400 billion if widespread lockdowns caused demand for aid to increase again. The federal debt was likely to top $1.2 trillion.

The Liberals argue the debt is manageable because economic growth should outpace interest rates, meaning more money coming in than the federal treasury will have to pay out over time.

A report Tuesday from the C.D. Howe Institute said the fiscal sustainability the Liberals outline is possible, but far from guaranteed.

If repayments are bigger than economic growth, that could mean spending cuts, tax increases or a combination of the two may be needed to keep deficits from spiralling.

The think-tank’s paper argued for the government to cut business subsidies that don’t address a clear market failure. If tax increases are necessary, the think tank said taxes on business investment should be avoided because they drive capital overseas and could push down wages here.

Jordan Press, The Canadian Press

federal budgetLiberals

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A new park is under development for the Lower Kootenay Band. Ken White, facility and operations manager, holds up the draft plans with Nasukin Jason Louie on the construction site. (Photo by Kelsey Yates)
Lower Kootenay Band develops plan for new memorial park

The new Kulilu Garden will serve as a memorial for children who died from polio and tuberculosis in the 1930s and 40s

A new Kootenay Farms Food Hub facility will be opening in Creston this fall to support food processing, packaging, and distribution to increase access to additional healthy, local foods in the region. The project is being led by the Fields Forward Society and will use equipment such as the Kootenay Mobile Press (pictured). (Submitted)
Creston’s upcoming food processing facility will allow for new value-added products

With affordable equipment, farmers and growers can create new items like jerky, jam, and juice

COVID-19 numbers continue to rise in the Kootenays. Illustration: BC Centre for Disease Control
Highest weekly number of new COVID-19 cases in 2021 for Nelson

The Nelson local health area had 13 new cases in early April

ANKORS held a small demonstration outside Nelson City Hall and the courthouse Wednesday to mark the five-year anniversary of the province declaring the toxic drug supply crisis. Photo: Tyler Harper
‘We’re all supposed to take care of each other’: 5 years of toxic drug supply crisis marked in Nelson

Over 7,000 people have died in B.C. since the crisis was announced in 2016

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Feb. 1, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps to 1,168 Wednesday, nearly 400 in hospital

Now 120 coronavirus patients in intensive care, six more deaths

Moss covered branches are seen in the Avatar Old Growth Forest near Port Renfrew on Vancouver Island, B.C. Thursday, Sept. 29, 2011. THE CANADIAN PRESS/Jonathan Hayward
B.C. blockades aimed at protecting old-growth forests reveal First Nation split

Two Pacheedaht chiefs say they’re ‘concerned about the increasing polarization over forestry activities’ in the territory

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Richmond RCMP Chief Superintendent Will Ng said, in March, the force received a stand-out number of seven reports of incidents that appeared to have “racial undertones.” (Phil McLachlan/Capital News)
‘Racially motivated’ incidents on the rise in B.C’s 4th largest city: police

Three incidents in Richmond are currently being invested as hate crimes, says RCMP Chief Superintendent Will Ng

A still from the video taken of a violent arrest on May 30, 2020 in downtown Kelowna. (File)
Kelowna Mountie charged with assault for caught-on-camera violent arrest

Const. Siggy Pietrzak was filmed punching a suspected impaired driver at least 10 times during an arrest

A screenshot from a Nuu-chah-nulth healing song and performance created in collaboration between Hjalmer Wenstob and Timmy Masso. (Screenshot from YouTube)
VIDEO: Tla-o-qui-aht First Nation brothers produce COVID-19 healing song

Hjalmer Wenstob and Timmy Masso share dance and inspiration.

Most Read