The coronavirus pandemic has exploded the budget deficit of the Canadian government to 354.2 billion Canadian dollars (235 billion euros) during the year 2020-2021, concluded at the end of March, announced Monday the Minister of Finance, Chrystia Freeland.
This record deficit represents 16.1% of GDP.
Read also: Canada increases its greenhouse gas emissions reduction target to 36% by 2030
The 2021-2022 budget presented by Ms. Freeland provides for a post-pandemic recovery plan of $ 101.4 billion over three years and targets Canadian economic growth of 5.8% this year, a forecast significantly higher than in previous years. . The budget deficit for the current year is expected to drop to $ 154.7 billion (6.4% of GDP) and Ottawa does not expect a return to balance by 2026.
“This budget aims to end the fight against Covid. It aims to heal the economic wounds stemming from the recession caused by the Covid. It also aims to create more jobs and prosperity for Canadians in the days and decades to come, ”
said Chrystia Freeland.
“The objective is to meet the urgent needs of today and to build for the long term,”
she added.
A network of public daycares
The centerpiece of the budget is an investment of $ 30 billion over five years to establish a network of public child care centers, at an average price of $ 10 per day, across Canada.
It would be modeled on the network set up in Quebec more than 20 years ago.
This new national child care network would require additional annual investments of $ 8.3 billion after five years, but would allow parents to have access to quality service at "an average cost of $ 10 per day," said Ms. Freeland.
"Green recovery"
Ottawa will also invest an additional 17.6 billion Canadian dollars (11.6 billion euros) in a
"green recovery"
of its economy, which will allow it to revise upwards its greenhouse gas reduction target. by 2030 compared to 2005. The new target aims for a 36% reduction in GHGs, compared to 30% previously, and Ottawa reiterates its objective of becoming carbon neutral by 2050.
The budget also extends until the end of September the main aid put in place by Ottawa for the benefit of businesses and workers during the pandemic.
The 2021-2022 budget, the year started on April 1, forecasts government spending totaling $ 509.8 billion, against revenues of $ 355.1 billion.
