|
Dear friends,
The 2021 Federal Budget contained three major themes: conquering COVID-19, providing the economic stimulus required to grow our economy, and building a fairer, more innovative and resilient Canada.
Building on the Fall Economic Statement, our government is determined to address the health of our economy and the health and well-being of Canadians. We are recognizing the entrenched inequalities in our society and are taking steps to remedy this. Finally, we are moving forward with resolve to protect and heal our planet with stronger commitments to addressing climate change.
What follows are some of the highlights from Budget 2021. Anyone interested in accessing the full text of the Budget can do so at: https://www.budget.gc.ca/
Stay safe,
Rob
|
|
|
- COVID-19 has been the most significant event to impact Canada's economy since the Great Depression.
- Over the first half of 2020, our GDP shrunk by 13.4%. From mid-March to the end of April 2020, over 3 million Canadians lost their jobs.
- Because of the swift response of the federal government to provide support to individuals and businesses, Canada's GDP rebounded in the third quarter of 2020 and over 75% of the 3 million jobs lost were recovered.
- Economists with Canada's major banks are forecasting growth of real GDP by 5.8% in 2021.
- The unemployment rate is expected to be 8% in 2021 and 6.5% in 2022 as more people return to work or start new jobs.
- Thanks to the prudent fiscal management of the federal government, Canada entered the global pandemic in a stronger fiscal position than many of our G7 partners.
- Our government has not abandoned its commitment to fiscal responsibility. Despite the historic investments we made to support individuals and businesses, public debt charges as a percent of GDP are expected to remain near their lowest levels in over a century.
- We will reduce the federal debt as a percentage of GDP over the medium term to ensure that future generations are not saddled with COVID-19 related debt.
|
|
|
JOB CREATION & WORKER SUPPORT
|
|
- We will introduce legislation to establish a $15 per hour federal minimum wage.
- With the establishment of the new Apprenticeship Service in 2021-22, 55,000 first-year apprentices in Red Seal trades and construction will have opportunities to work for small- and medium-sized businesses.
- We will provide $250 million over three years starting in 2021-22 to help 15,500 Canadians upgrade their skills and transition to new jobs.
- To help adults afford returning to school full-time, we are extending the $1600 adult learner top-up until July 2023.
- Budget 2021 will help one million low-income workers by expanding the Canada Workers Benefit.
- There will be an investment of $70 million over 3 years to support the performing arts, including musicians and concert venues.
- The Canada Recovery Benefit will be available for an additional 12 weeks.
- The Canada Emergency Wage Subsidy will be extended until September 25, 2021.
- The Canada Emergency Rent Subsidy will be extended until September 25, 2021.
|
|
- With school and daycare closures during the pandemic, women dropped out of the labour force to care for children and families.
- Budget 2021 will invest $30 billion over the next five years, plus $8.3 billion ongoing to establish Early Learning and Child Care across Canada.
- Our government's goal is to achieve $10 per day daycare across Canada within five years.
- Starting in 2021-22, we will provide $29.2 million over two years to Child Care centres to improve their accessibility.
|
|
|
- COVID-19 claimed the lives of too many senior citizens, especially those in Long-Term Care residences. Through Budget 2021, we are investing $3 billion to ensure that provinces and territories provide the highest standard of care in their Long-Term Care residences.
- Our government is launching the Age Well at Home Initiative in 2021-22 with an investment of $90 million over three years. This funding will assist community- based organizations provide services to low-income and vulnerable seniors, who will remain in their own homes.
- Senior citizens aged 75 and older will receive a one-time OAS payment of $500 in August 2021.
- We will also introduce legislation to increase OAS payments by 10% for seniors 75 and older starting in July 2022. This will assist 3.3 million seniors who need financial supports in their later years.
|
|
|
- Budget 2021 will provide an additional $1.5 billion for the Rapid Housing Initiative. This will add a minimum of 4,500 affordable housing units to the 4,700 units funded through the Fall Economic Statement.
- We will provide $315.4 million over seven years starting in 2021-22 to increase direct financial assistance to low-income women and children fleeing violence.
- Our government will invest $118.2 million over seven years to support community housing providers that deliver long-term housing to the most needy and vulnerable.
- $300 million in funding in 2021-22 and 2022-23 will support the conversion of vacant commercial property into housing.
|
|
|
- Budget 2021 will provide $80 million over three years to reach 3 million more students and provide them with digital skills, including coding.
- Because of the disproportionate impact of job losses among youth, we are investing $239.8 million in the Student Work Placement Program in 2021-22 to connect young people with employers.
- We will invest $109.3 million in 2022-23 for the Youth Employment and Skills Strategy to better meet the needs of vulnerable youth. Investments in this program will lead to an additional 30,600 new job placements in 2021-22.
- Through the Canada Summer Jobs program, we will provide funding to create 94,000 jobs in 2021-22 and 75,000 jobs in 2022.
|
|
|
CLIMATE CHANGE & THE ENVIRONMENT
|
|
- Since 2015, our government has invested $60 billion towards climate action.
- The Net-Zero Accelerator will lead Canada to innovative net-zero technologies. In Budget 2021, we will provide $5 billion over seven years to the Net-Zero Accelerator which will support projects aimed at reducing Canada's greenhouse gas emissions.
- Our government will reduce by 50% the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies.
- Building on the 2018 tax incentives for businesses that invest in energy efficient equipment, we will expand the list of eligible equipment to enable more businesses to qualify for the tax incentives.
- We will introduce an investment tax credit for capital invested in Carbon Capture, Utilization, and Storage Technologies.
- Our government will change the delivery of the Climate Action Incentive Payments from an annual refundable payment made through personal income tax returns to a system of quarterly payments starting in 2022.
|
|
|
Thank you for your continued goodwill and community spirit through this difficult time. Although we are working from home, my staff and I are making every effort to ensure Don Valley West remains a strong, vibrant community through this pandemic.
If you have any concerns, questions, or suggestions, please do not hesitate to contact me at [email protected] or call 416-467-7275.
All the best,
|
|
|
Connect with me on social media
|
|
|
|
|
|
|
