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What’s Included In Canada’s 2021 Budget?

Laura Hampshire
Apr 19, 2021 | 5:09 PM
Last Updated: Apr 19, 2021 | 5:16 PM

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What's Included In Canada's 2021 Budget?


A historic budget has been presented today by Deputy Prime Minister and Finance Minister Chrystia Freeland.

Freeland said the budget includes a three-point plan to conquer COVID-19, climb out of the recession and build a more resilient Canada.

The budget includes $101-billion in spending over three years to kick start the economy, a plan for $10 a day child care, an extension for emergency supports, and a new hiring program to boost jobs.

It also proposes increasing Old Age Security for seniors 75 years and older starting in 2022, and $29.2 million over two years to help children with disabilities.

Some of the highlights include:

  • Helping Hard-hit Businesses Hire More Workers

Budget 2021 proposes to introduce the new Canada Recovery Hiring Program for eligible employers that continue to experience qualifying declines in revenues relative to before the pandemic. The proposed subsidy would offset a portion of the extra costs employers take on as they reopen, either by increasing wages or hours worked, or by hiring more staff.

  • Extension of Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy and Lockdown Support Beyond June 2021

The Canada Emergency Wage Subsidy has helped more than 5.3 million Canadians keep their jobs, and the Canada Emergency Rent Subsidy and Lockdown Support have helped more than 154,000 organizations with rent, mortgage, and other expenses. Budget 2021 proposes to extend the wage subsidy, the rent subsidy, and Lockdown Support until September 25, 2021.

  • Enhancing the Canada Small Business Financing Program

To make sure small business and independent entrepreneurs can access the capital they need to recover, innovate, and grow in the long-term, Budget 2021 proposes to improve the Canada Small Business Financing Program. These proposed amendments are projected to increase annual financing by $560 million, supporting approximately 2,900 additional small businesses.

  • Creating New Opportunities for Skilled Tradespeople

The skilled trades are vital to our economy, and apprenticeships are the bridge that help skilled workers, especially young people starting their careers, connect with businesses and find well-paying jobs. Budget 2021 proposes to provide $470 million over three years, beginning in 2021-22, to Employment and Social Development Canada to establish a new Apprenticeship Service, which would help 55,000 first-year apprentices in construction and manufacturing Red Seal trades connect with opportunities at small and medium-sized employers. It will provide an additional incentive for employers who hire people traditionally underrepresented in the trades, including women, racialized Canadians, and persons with disabilities.

  • Responding to the Tragedy of Missing and Murdered Indigenous Women and Girls

The government is accelerating work on the National Action Plan in response to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Calls for Justice and the implementation of the Truth and Reconciliation Commission’s Calls to Action. Budget 2021 proposes to invest an additional $2.2 billion over five years, beginning in 2021-22, and $160.9 million ongoing, to help build a safer, stronger, and more inclusive society.

  • Canada Small Business Financing Program

Small businesses need access to financing in order to invest in people and innovation, and to have the space to operate and grow. Budget 2021 proposes to improve the Canada Small Business Financing Program to increase annual financing by $560 million, supporting approximately 2,900 additional small businesses, alongside other enhancements that will increase the eligibility to this financing and permit lending against intellectual property and start-up assets and expenses.

  • Credit Card Swipe Fees

With a rise in online transactions during the pandemic, small- and medium-sized businesses incur interchange fees for these transactions. The government will engage with key stakeholders to: lower the average overall cost of interchange fees for merchants; ensure that small businesses benefit from pricing that is similar to large businesses; and protect existing rewards points for Canadian consumers.

  • Canada Community Revitalization Fund

In many communities, the most vibrant spaces in our communities have laid dormant as Canadians took precautions to stay safe. Budget 2021 proposes to provide $500 million over two years, starting in 2021-22, to the regional development agencies for community infrastructure. These projects will stimulate local economies, create jobs, and improve the quality of life for Canadians from coast to coast to coast.

  • Establishing a Canada-Wide Early Learning and Child Care System

Budget 2021 makes a generational investment to build a Canada-wide early learning and child care system. This plan will aim to reduce fees for parents with children in regulated child care by 50 per cent on average, by 2022, with a goal of reaching $10 per day on average by 2026, everywhere outside of Quebec. Budget 2021 will invest almost $30 billion over the next five years and provide permanent ongoing funding, working with provincial and territorial, and Indigenous partners to support quality, not-for-profit child care, and ensuring the needs of early childhood educators are at the heart of the system.

  • Supporting the mental health of those most affected by COVID-19

As part of an overall investment of $1 billion in the mental health of Canadians, including veterans and Indigenous people, Budget 2021 proposes to provide $100 million over three years, starting in 2021-22, to support projects for innovative mental health interventions for populations disproportionately impacted by COVID 19, including health care workers, front-line workers, youth, seniors, Indigenous peoples, and racialized and Black Canadians.

Funding for the Kids Help Line has been extended into 2021-22 to ensure that it can continue to deliver counselling services to youth during the pandemic. Canadians aged 5 to 29 can call the Kids Help Phone at 1-800-668-6868.

For a closer look at the 2021 Budget, please click here.

 

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