Prime Minister Justin Trudeau gives Finance Minister Chrystia Freeland the thumbs up after she delivered the federal budget in the House of Commons in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Prime Minister Justin Trudeau gives Finance Minister Chrystia Freeland the thumbs up after she delivered the federal budget in the House of Commons in Ottawa on Monday April 19, 2021. The federal government unveiled spending plans to manage the remainder of the COVID-19 crisis and chart an economic course for a post-pandemic Canada. THE CANADIAN PRESS/Sean Kilpatrick

Federal Budget 2021: Liberals extend COVID-19 aid with election top of mind

The government will need to get at least one opposition party to support it to avoid a pandemic election this spring.

The first federal budget in more than two years extends Ottawa’s COVID-19 “lifeline” for workers and struggling businesses another few months as it aims to pull Canada through the pandemic once and for all.

Finance Minister Chrystia Freeland’s first crack at a budget plan is also widely viewed as a pre-election platform with more than $100 billion in new spending over the next three years targeting a wide variety of voters, from seniors and their caregivers, to parents and business owners.

“This budget is about finishing the fight against COVID,” Freeland said, in her budget-day speech. “It’s about healing the economic wounds left by the COVID recession. And it’s about creating more jobs and prosperity for Canadians in the days and decades to come.”

The government will need to get at least one opposition party to support it to avoid a pandemic election this spring.

Canada’s net debt is now over $1 trillion for the first time ever, after a $354 billion deficit for the pandemic year just over. It is expected to keep climbing with deficits of $155 billion this year, and $60 billion in 2022-23.

That is driven in part by more than $100 billion in new spending over the next three years, including costs to maintain federal wage and rent subsidies and aid for laid-off workers, until September now, instead of cutting them off in June.

Freeland is also looking ahead to the post-pandemic Canada the Liberals want to see, one that has $10-a-day childcare, the ability to produce its own vaccines, national long-term care standards and small- and medium-sized businesses equipped with the workers and technology they need to survive.

It also includes a greener, cleaner Canada, with a promise of more than $17 billion in climate change programs, much of it in the form of incentives to encourage heavy industry to curb their emissions and grow Canada’s clean technology sector.

All of it comes with a pandemic-sized asterisk that things could still change drastically if vaccine supplies are delayed or they prove not to work that well against emerging variants of the virus. The budget includes alternative scenarios that show where the fiscal picture might go if the worst-case scenarios of the pandemic play out.

Those risks seem even more real as the country is battling the worst wave of the pandemic yet with record hospitalizations and patients in critical care, and doctors and nurses warning repeatedly of a health care system on the brink of collapse.

Freeland acknowledged the weight the pandemic continues to bear on Canadians.

“We are all tired, and frustrated, and even afraid,” she said. “But we will get through this.”

The pandemic has thrown everything off course for more than a year, including the plan the Liberals intended to use after the 2019 election. For the Liberals first four budgets, every one went with a title about the middle class — growing it, investing in it, making it stronger.

This time, Freeland — who is making history as the first female finance minister to table a federal budget — went with “A recovery plan for jobs, growth and resilience.”

That plan focuses on helping some of those hit hardest in the last year — sectors like tourism, as well as low-wage workers, small and medium-sized businesses, women and young people.

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

2021 Federal BudgetCoronavirusfederal government

Just Posted

A worker at Wee Geordies Liquor Store held at knifepoint on Wednesday at 3:30 p.m. A female entered the store and grabbed a bottle of liquor and produced a knife and demanded money. She was not located. (Wee Geordies video surveillance screenshot)
VIDEO: Two stores robbed on the same day in Kitimat

The first incident was at 5:45 a.m. and the second incident occurred 3:30 p.m.

McElhanney worked with the builder, LHLP, to develop a fishway in a highly constrained and fluctuating waterway. (McElhanney file photo)
McElhanney win natural resources and habitat award for the Anderson Creek Fishway

Local team used design elements to minimize the environmental impact of the LNG Canada construction

The community food share garden that was located in Mountainview Square between Pet Valu and BC Liquor store has been relocated to the Cornerstone garden between No frills and the lower mall access. (Jacob Lubberts photo)
Kitimat Food Share Garden getting set up for the season

The District of Kitimat has also contributed $30,600 in 2021 to the TSWA’s Food Share program

An aircraft gets serviced at the Northwest Regional Airport. An apron expansion project undertaken in October last year, will be able to accommodate six aircrafts once ready in May. (Binny Paul/ Terrace Standard)
VIDEO: Northwest Regional Airport apron expansion work nears completion

The $2 million project was undertaken to accommodate increased LNG Canada charter traffic

Kitimat RCMP searching for two robbery suspects. (File photo)
Two robbers, both armed with knives, sought

Incidents took place at corner store, liquor store

A worker at Wee Geordies Liquor Store held at knifepoint on Wednesday at 3:30 p.m. A female entered the store and grabbed a bottle of liquor and produced a knife and demanded money. She was not located. (Wee Geordies video surveillance screenshot)
VIDEO: Two stores robbed on the same day in Kitimat

The first incident was at 5:45 a.m. and the second incident occurred 3:30 p.m.

Bradley Priestap in an undated photo provided to the media some time in 2012 by the London Police Service.
Serial sex-offender acquitted of duct tape possession in B.C. provincial court

Ontario sex offender on long-term supervision order was found with one of many ‘rape kit’ items

Rich Coleman, who was responsible for the gaming file off and on from 2001 to 2013, was recalled after his initial testimony to the Cullen Commission last month. (Screenshot)
Coleman questioned over $460K transaction at River Rock during B.C. casinos inquiry

The longtime former Langley MLA was asked about 2011 interview on BC Almanac program

Steven Shearer, <em>Untitled. </em>(Dennis Ha/Courtesy of Steven Shearer)
Vancouver photographer’s billboards taken down after complaints about being ‘disturbing’

‘Context is everything’ when it comes to understanding these images, says visual art professor Catherine Heard

Trina Hunt's remains were found in the Hope area on March 29. Her family is asking the public to think back to the weekend prior to when she went missing. (Photo courtesy of IHIT.)
Cousin of missing woman found in Hope says she won’t have closure until death is solved

Trina Hunt’s family urges Hope residents to check dashcam, photos to help find her killer

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Police are at Ecole Mount Prevost Elementary but the students have been evacuated. (Kevin Rothbauer/Citizen)
Gardener finds buried explosives, sparking evacuation of Cowichan school

Students removed from school in an ‘abundance of caution’

A COVID-19 patient receives oxygen outside a hospital in Jammu, India, Wednesday, May 12, 2021. (AP/Channi Anand)
B.C. donates $500K to Red Cross COVID-19 relief efforts in India

The money will provide oxygen cylinders and ambulances for patients in communities grappling with the virus

Most Read