Covid-19 pandemic took the world by surprise. It affected almost all countries around the globe, from the third world countries to the big 7.
Canada was also hit hard by this pandemic and has started devising methods to pull out with a solid post-pandemic strategy. One of these post-pandemic strategies is proposed by the Canadian Prime Minister, Justin Trudeau. He is set to present a vision for Canada’s post-pandemic recovery that will also serve as an election platform. This financial plan is heavy on new spending, but he believes and assures that the mounting debt is affordable.
The April 19 budget is Justin Trudeau’s first full fiscal plan since before the Covid-19 pandemic. This fiscal plan would also contain long-term goals and visions that he could use to campaign on when canvassing for votes in the next election that could help him regain the parliamentary majority.
Trudeau’s administration has proposed as much as $100 billion (US$80 billion) in additional money over the course of the next three years for initiatives including childcare to green energy. The expectations have been set high to such an extent that the odds of being ruled out are slim. Canada Finance Minister Chrystia Freeland, in a statement, described the budget as one of the most critical of our lifetime.
Canada government plans to create a new program to temporarily finance new hiring
According to an insider familiar with the budget but requested anonymity, the government plans to extend wage and rent subsidies until September. Also, the government plans to create a new program to temporarily finance new hiring, at $1,100 a month for each new worker. This is all in a bid to cushion the current effects of the pandemic.
The budget is coming at an intense period. A time when the economy is growing faster than expected, but also a time with a recent rise in Covid-19 cases, forcing Ontario to place strict restrictions on movement. Coming at a time when Canada faces her third and deadliest wave of the Covid-19 pandemic, the budget includes a lot of “firsts” as described by Elliot Hughes, previous counselor to Freeland’s archetype. It is the first federal budget in two years, the first federal budget for the Finance Minister, Chrystia Freeland, and also the first time a female Finance Minister is proposing a budget.
The new budget will be the highest ever spending recorded by the nation. According to the federal spending watchdog, Canada will likely report a budget deficit of $363billion or a 17% GDP in the fiscal year that ended on the 31st of March. From a forecast by a Bloomberg survey of economists, another $150 billion is estimated to be spent this year.
When all the money is out, Justin Trudeau’s government would have incurred debts more than all the 22 prime ministers before him combined. However, he is still hoping that Canadians are in the mood to think outside the box and aim high.
Desperate times call for desperate measures; thus, the government believes the budget will assist the economy to fully recoup last year’s losses as early as this year. Also, it will serve as a means to boost the tax revenue for Canada.