The first federal budget since the pandemic began and the first since 2019 includes $104 billion in total spending increases over the next three years and a deficit that has ballooned to $354.2 billion.
Spending highlights include a three-month extension of the federal wage and rent subsidies.
The supports will now be available until September 25th, at a cost of approximately $12 billion.
Finance Minister Chrystia Freeland also announced $30 billion over five years for a national child care plan, which the Trudeau government believes will help with economic growth.
“This is social infrastructure that will drive jobs and growth,” Freeland says, “Early learning and childcare is a national economic policy we need now.”
Also in the budget is $13.5 billion over five years for Indigenous communities, $17.5 billion for a green recovery fund, $1 billion for the tourism sector, $2.5 billion for affordable housing, and a proposed $15 an hour federal minimum wage.
There is also a new digital service tax of 3 percent on large e-commerce businesses, $2.2 billion over seven years for the sciences, and $82.5 million for COVID-19 testing at major airports.
Smokers will once again be helping to pay for programs with a $4-per-carton increase.
Jagmeet Singh is disappointed that the federal budget isn’t raising taxes on the richest Canadians.
While it does contain a tax on so-called luxury goods, the federal NDP leader isn’t impressed, saying that would only be a good step alongside other measures.
“On its own, it’s not going to actually increase revenues in any significant way, nor is it really going to get at the fact that the ultra-rich have profited, in just significant and substantial ways, record profits in this pandemic,” Singh says.
Singh argues the budget is forcing workers and families to fund Canada’s recovery from the pandemic.
Meanwhile, the federal Conservative leader says the Trudeau government’s latest budget is an “incredible letdown.”
Erin O’Toole said they wanted to see a plan that would secure jobs for all Canadians across the country.
“Mr. Trudeau failed to put forward a plan to help Canadians and he’s leaving them behind,” O’Toole said. “That’s why the Conservatives will be proposing amendments and our own policies because we feel this falls so incredibly short.”
O’Toole said the Liberal budget has no plan for small business and is a temporary band-aid for young people.
