Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Liberals to release federal budget with eye on managing crisis, post-pandemic growth

There is a political element to the budget, as feds need to find at least one other party to support it

The federal government will this afternoon unveil its spending plans to manage the remainder of the COVID-19 crisis and chart an economic course in a post-pandemic Canada.

The Liberals’ first budget in two years is expected to outline the government’s plans for a national child-care system, including what strings will be attached to any spending.

There are also expected to be measures to boost the supply of affordable housing and money aimed at greening the economy as the Liberals look to chart a path for promises on climate change.

Meanwhile, Finance Minister Chrystia Freeland is being asked by provinces for more health-care money to manage the ongoing pandemic and future costs, while hard-hit businesses, charities and workers are looking for a pledge to keep aid flowing beyond the summer when many programs are slated to end.

There is also a political element to the budget, as the government needs to find at least one other major party to support the document in confidence votes in the House of Commons.

Without a parliamentary dance partner, the government would fall and the country would be plunged into a federal election campaign.

Elliot Hughes, a one-time adviser to the last Liberal finance minister to table a budget, Bill Morneau, said this budget should balance Canadians’ present concerns about the pandemic with longer-term economic needs.

The document will also likely outline the Trudeau Liberals’ vision for the country that will, in turn, give opposition parties a chance today to lay out their own ideas to voters, he added.

“It’s for people to reflect and see and think, ‘What kind of approach by government best suits me and who do I want leading, frankly, in the years to come as we emerge from the pandemic?’ ” said Hughes, now with Summa Strategies.

The deadly virus has led to economic restrictions that in turn forced the closure of non-essential businesses, schools and daycares, causing a historic slide in employment.

There was an equally historic flow of federal aid to brace the financial foundations of businesses and households, with today’s budget detailing last year’s deficit that was last estimated to be $380 billion.

Although the economy overall has done better than previously expected, there are still pockets of hurt in the country with sectors highly reliant on in-person interactions, such as restaurants and tourism, looking at a long recovery.

Public confidence, too, is being shaken in government as Canadians feel under siege in the face of a third wave of COVID-19, said Kathy Brock, a professor at Queen’s University’s school of policy studies.

“They’re looking at this budget to say, ‘Well, what can government can do and what is government going to do to help citizens, to help sectors of the economy?” ” Brock said.

The Liberals’ favoured fiscal guardrail to keep spending from going off the rails — the debt-to-GDP ratio — has itself gone astray. The government should work to stabilize the figure and outline a plan to eventually reduce it, said RBC senior economist Josh Nye.

“It’s going to take an extremely long time to get back to the levels that we saw pre-pandemic,” he said. “Certainly making sure things are moving in the right direction, I think that’s something that investors and rating agencies will want to see.”

READ MORE: Election reticence expected to temper political battle over federal budget

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Coronavirusfederal budgetLiberals

Just Posted

Michelle Jacobs receives her first dose of the COVID-19 vaccine at the Coast Capri Hotel on April 28, 2021. The pop-up clinic was hosted by the First Nations Health Authority. (Aaron Hemens/Capital News)
126 new cases of COVID-19 in Interior Health over the weekend

There are 22 individuals hospitalized due to the virus, and 13 in intensive care

The Sparwood Golf Club received $1,206.12 for a lighting project as part of its wider renewal efforts. (Image contributed by Columbia Foundation of the Kootenay Rockies)
CFKR allocates over $11,000 to Elk Valley community programs

Over $50,000 was dished out between the communities of the Kootenay Rockies

RDEK is calling for nominations for their Volunteer of the Year award in all six electoral districts.
RDEK posts operating surplus as pandemic reduces costs

The RDEK has posted an operational surplus of $8 million as local… Continue reading

North Okanagan business Hytec Kohler set up a COVID-19 vaccination clinic at the Spallumcheen plant Friday, May 14. (Jennifer Smith - Morning Star)
More than half of eligible adults in Interior Health vaccinated

Over 365,000 vaccine doses have been administered throughout the Interior Health region

Fernie Ghostriders head coach Jeff Wagner has committed to two more years with the team. Phil McLachlan/The Free Press
Fernie Ghostriders coach departs: Wagner moves to Coquitlam

Jeff Wagner will move to the Lower Mainland as associate coach and director of scouting with the Coquitlam Express

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present seven-year-old Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
7-year old Shuswap boy receives medal of bravery for rescuing child at beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the province’s COVID-19 vaccine program, May 10, 2021. (B.C. government)
B.C.’s COVID-19 infection rate stays below 500 a day over weekend

14 more deaths, down to 350 in hospital as of Monday

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Royal Bay Secondary School’s rainbow crosswalk was vandalized shortly after being painted but by Monday, coincidentally the International Day Against Homophobia, Transphobia and Biphobia, the crosswalk had been cleaned up and students had surrounded it with chalk messages of support and celebration. (Zoe Ducklow/News Staff)
B.C. high’s school’s pride crosswalk restored following ‘hateful’ graffiti attack

Hate terms, racial slur, phallic images spray-painted at Greater Victoria high school

Terrance Mack would have celebrated his 34th birthday on May 13, 2021. Mack’s family has identified him as the victim of a homicide in an apartment on Third Avenue in Port Alberni sometime in April. (SUBMITTED PHOTO)
Family identifies Ucluelet man as victim of Vancouver Island homicide

Terrance Mack being remembered as ‘kind, gentle’ man

Vancouver Canucks’ Jake Virtanen (18) and Calgary Flames’ Josh Leivo, front right, vie for the puck as goalie Jacob Markstrom, back left, watches during the first period of an NHL hockey game in Vancouver, on Saturday, February 13, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver Canucks forward Jake Virtanen sued over alleged sexual assault

Statement of claim says the woman, identified only by her initials, suffered physical and emotional damages

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Most Read