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Highlights
- Budget is nothing but a detailed document highlighting how the government wants to earn and spend
- The finance minister is set to table the Budget 2022 on 7 April in the House of Commons
- Budget 2022 is likely to shape up the Canadian economy, besides having a profound impact on all households
As we prep for one of the most crucial events of the year, the tabling of Budget 2022, let’s take a quick refresher on basics. Away from all news headlines, are a few basic facts that not everyone may be aware of.
What is Canada’s Federal Budget?
In a nutshell, it is a statement, largely financial, which outlines the intention of the federal government with respect to collecting revenue and spending over one year. It underscores how the government will undertake the use of public funds to give momentum to the economy.
Also read: Canada budget 2022: What to expect & what are the big questions?
Notably, the fiscal year of the government starts from April 1st until March 31st of the following year. Before the new fiscal year begins, discussions are held by the Standing Committee on Finance (FINA).
The preparation of the Budget document is undertaken by the Department of Finance, which also has a role in advising on fiscal and related matters.
Though the Budget is presented by the finance minister in the initial months of the calendar year, this did not happen in 2020. Last year, Chrystia Freeland tabled the budget in the House of Commons on 19 April. This year, this is due to happen on 7 April.
In Budget 2021, key themes included “Climate Action and a Green Economy”, “Small Businesses and Growth”, and “Jobs Creation”. The last was a primary focus as the economy was still reeling from the pandemic shock and it’s resulting economic downturn and job losses.
Also read: Canada Budget 2021: 10 Key Highlights You Cannot Miss
How can Canada Budget impact you?
Canada’s 2021 Budget had proposed earmarking of C$3 billion over five years for long-term care. The decision was targeted at senior Canadians and others living in care. It also included a proposal to invest a whopping C$5.7 billion over five years in the country’s youth. From repayment support to low-income borrowers to hundreds of millions of dollars for women entrepreneurship, the Budget 2021 covered the wider economic health of the country and virtually all its participants.
Also read: Canada Budget 2021 Analyzed: How Freeland Invoked Keynes?
By this count, and also because the budget is what outlines how Canada will move toward clean energy and electric mobility, the upcoming Budget is set to have a profound impact on all Canadians. Be it the issue with unaffordable housing or making the immigration system of the country more streamlined, it was covered by the last year’s Budget. Many related aspects may feature again in Budget 2022.
Also read: Canada Budget 2021: Does Fiscal Deficit Translate into Bad Economics?
Bottom line
Canada’s Federal Budget is a detailed document that highlights how the government wants to deal with the economy during the year. It impacts both macro and micro economic elements. Since the document is wide-ranging -- covering it all including healthcare, sustainable growth, and job creation -- it should be read and understood by all, at least the summary and major highlights.
