Decreased deficit, additional COVID supports headlines feds 2021 Fall Economic Update

Deputy Prime Minister and the Minister of Finance, Chrystia Freeland presented Canada’s 2021 Fall Economic and Fiscal Update virtually to the House of Commons on Tuesday (Dec 14, 2021).

One of the big take a way's from the report was Canada’s deficit is projected to be much lower than originally forecasted in the April budget.

Canada’s deficit is reported to be $327.7 billion for the last fiscal year $26.5 billion lower than projected, and $144.5 billion for this fiscal year a $10.2 billion decrease than forecasted.

In the 2022-23 fiscal year, the deficit is projected to be much lower and sit at $58.4 billion.

“By delivering significant fiscal policy support to the economy and avoiding the harmful austerity policies that followed 2008, our investments have supported a rapid and resilient recovery so far. In fact, we have recovered 106 per cent of the jobs lost at the peak of the pandemic. But we know there is more to do, and the future remains uncertain. As Omicron has reminded us, COVID-19 threatens us still. As 2021 draws to a close, finishing the fight against COVID-19 remains our most important national project.” said Freeland.

Canada will continue the fight against COVID-19 and the emerging Omicron variant as they have set aside $1.7 billion, to purchase more than 180 million additional rapid tests.

Freeland also noted Canada has budgeted for $4.5 billion to pay for further costs of the COVID-19 pandemic and the Omicron variant, including spending on border measures and income and business supports. In addition, the federal government is working towards ten days of paid sick leave for workers in federally-regulated businesses.

To date, 89.6 per cent of those aged 12 and older Canada-wide have received their first dose of the vaccine, while 86.72 per cent are fully vaccinated.

The report included a provision to settle cases on harm to First Nation children, by putting aside $20 billion for compensation and $20 billion to improve the system going forward.

Other topics included in the 2021 Fall Economic Update includes:

• $1.7 billion to increase access to rapid testing supplies across Canada, helping to identify cases early, break the chain of transmissions, and reduce outbreaks.

• $2 billion to procure lifesaving COVID-19 therapeutics and treatments.

• $100 million through the Safe Return to Class Fund and $10 million for First Nations on-reserve schools to improve ventilation in schools and protect students, teachers, school staff, and parents from outbreaks.

• Northern Canadian’s can claim up to $1,200 in eligible travel expenses come January 2022.