Federal Budget 2021 Highlights

Finance Minister Christia Freeland tabled the 2021 federal budget in the House of Commons today.   The budget funds a range of new measures of interest to local governments in housing, climate action, economic development, mental health and child care.  After the budget measures, Canada will have a $354.2 billion deficit with a federal debt of 51% of GDP. 

 

 

Housing

  • An additional $2.5 billion over seven years, starting in 2021-2022, to the Canadian Mortgage Housing Corporation to support the construction and repair of affordable housing units, including $1.5 billion for the Rapid Housing Initiative.
  • A re-allocation of $1.3 billion in previously announced funding for the construction and repair of housing units and transitional shelters.
  • A new one (1) per cent tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused.
  • An additional $567 million over two years, beginning in 2022-23, for the federal homelessness strategy, Reaching Home.

Child Care 

  • New investments of up to $27.2 billion over five years, starting in 2021-22, for a 50/50 share of child care costs with provincial and territorial governments, as part of initial 5-year agreements.

Climate Action & Clean Growth

  • $5 billion over seven years, starting in 2021-22, to the Net Zero Accelerator,  to support for projects that will help reduce domestic greenhouse gas emissions across the Canadian economy.
  • In partnership with the Government of British Columbia, provide up to $35 million to help establish the Centre for Innovation and Clean Energy to advance the scale-up and commercialization of clean technologies in B.C. and across Canada. 

Economic Development

  • $553.1 million over five years, starting in 2021-22 to create a new regional economic development agency for BC and $110.6 million ongoing to support the agency.
  • $500 million for a Tourism Relief Fund that will support investments by local tourism businesses in adapting their products and services to public health measures, and supporting economic recovery. 
  • $400 million in 2021-22 to create a temporary Community Services Recovery Fund to help charities and non-profits adapt and modernize so they can better support the economic recovery in our communities.
  • $500 million over two years, starting in 2021-22, to the regional development agencies for community infrastructure.

Mental Health:

  • $100 million over three years, starting in 2021-22, to support projects for innovative mental health interventions for populations disproportionately impacted by COVID 19.
  • $50 million over two years, starting in 2021-22, to support a trauma and post-traumatic stress disorder (PTSD) stream of mental health programming for populations at high risk of experiencing COVID-19 trauma and those exposed to various trauma brought about by COVID-19.

Long Term Care

  • $3 billion over five years, starting in 2022-23, to support provinces and territories in ensuring standards for long-term care are applied and permanent changes are made.

Wage & Rent Subsidy

  • $10.1 billion in 2021-22 to extend the wage subsidy until September 25, 2021.
  • $1.9 billion in 2021-22 to extend the rent subsidy and Lockdown Support until September 25, 2021.

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