A projected decline in the federal deficit in 2021-2022.
Finance Minister Chrystia Freeland delivered the financial and economic update virtually Tuesday afternoon after a pair of her staffers tested positive for COVID-19.
The deficit is projected to hit $144.5 billion, which is down from $154.7 billion estimated in the spring budget.
In the 2022-23 fiscal year, the deficit is projected to sit at $58.4 billion.
Ottawa is committing to spend an additional $8.1 billion to help finish the fight against COVID-19.
Highlights
- Allocating $2 billion over two years to the Public Health Agency of Canada (PHAC) to procure COVID-19 therapeutics
- $1.7 billion to Health Canada and PHAC to help provinces and territories secure rapid tests and the supplies needed to administer them
- $742.4 million in one-time payments to low-income seniors across Canada who saw their Guaranteed Income Supplement clawed back by accepting the Canada Emergency Response Benefit or the Canada Recovery Benefit.\
- Income tax revenues are projected to be higher by roughly $12 billion per year
- Total tax revenues will reach $312.1 billion by the end of the 2021-22 fiscal year, climbing to $391 billion by 2026-27
Ahead of the update, $40 billion was set aside for First Nations child welfare when it comes to residential school compensation.
The money was tabulated after two class action lawsuits were settled, a Canadian Human Rights Tribunal order and long term reform of the Indigenous Child welfare system over five years.
