Publishing Date
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.