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ARTICLE · 21 APRIL 2021

Budget 2021: Canada's COVID-19 Recovery Budget

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In Federal Budget 2021 (Budget 2021) the Minister of Finance celebrates a projected federal deficit of $354 billion for 2020/2021, being significantly lower than the government's earlier forecast...

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In Federal Budget 2021 (Budget 2021) the Minister of Finance celebrates a projected federal deficit of $354 billion for 2020/2021, being significantly lower than the government's earlier forecast of the deficit. Only in a COVID-19 world would such an enormous deficit be considered a success.

The government stated that Budget 2021 is about finishing the fight against COVID-19 and creating prosperity for Canadians in the decades to come. In line with this objective, some of the most significant fiscal measures in Budget 2021 include extending the Canada Emergency Wage Subsidy (CEWS) and expanding the Canada Workers Benefit (CWB). These are expensive measures. The CEWS will apply to the 2021/2022 fiscal year at a cost that is forecast to be over $10.1 billion. The CWB will involve ongoing assistance which is forecast to cost an additional total amount in excess of $8.9 billion over the five-year period ending in 2026.

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