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Summary
- The Canadian government will finally table a fresh budget for 2021 on April 19.
- The upcoming official budget comes after a gap of two years as the Liberals had called off the 2020 budget in March in the wake of the rising coronavirus crisis.
- The 2021 federal budget will be the first for FM Freeland, who took over the office after Bill Morneau resigned last year.
The Canadian government will finally table a fresh budget for 2021 on April 19. Finance Minister Chrystia Freeland made the announcement on Tuesday, March 23.
The upcoming official budget comes after a gap of two years as the Liberals had called off the 2020 budget in March in the wake of the rising coronavirus crisis.
Pointing that Canada entered the coronavirus pandemic last year with a “strong fiscal position”, FM Freeland said that the Trudeau government will continue to support the public and focus on “robust growth”.
What do we know at this point about the 2021 Budget? Let’s find out.
Canada’s 2021 Budget – What Do We Know?
The upcoming budget will be the first for FM Freeland, who took over the office after Bill Morneau resigned last year. The Canadian government has said that it will delve deeper into the details of its economic stimulus plan during the meeting.
The 2021 budget, which comes approximately a year after the onset of the pandemic, can be expected to take a close look at Canada’s financial status amid record spending levels and severe unemployment figures.
©Kalkine Group 2020
The last tabled budget in Canada, presented in March 2019, had projected a federal deficit of about C$ 19.7 billion for the fiscal year of 2020-21. But as the pandemic tore through the global economy, the economic update from fall 2020 noted that Canada’s 2020-21 federal deficit had ballooned to about C$ 381.6 billion in 2020-2021.
The fall figures had warned of the crisis worsening in case of extended lockdown restrictions due to rise in COVID-19 infections, which did happen near the end of 2020 due to the second wave. As the number of cases continue to rise, it is likely that the key spending document will focus on targeted supports for the health care sector, small businesses, etc.
2021 Budget for the Liberal Govt
The MPs also pointed in their pre-budget hearings that the 2021 budget will play an important role in molding Canada’s way to recovery efforts in a post-COVID world. They also reportedly noted that it will be vital that the budget focuses on the government’s promises while making sure it steers clear of an unsustainable spending course.
©Kalkine Group 2020
Aside from all the points mentioned, the 2021 budget will also play a key role in determining the Liberal minority government’s future. The budget bill presented by the Liberals will need the Opposition’s approval to pass. If they fail to secure the support, the government could collapse and trigger a snap election.
