Liberal government to unveil federal budget on April 19: Chrystia Freeland

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Liberal government to unveil federal budget on April 19: Chrystia Freeland


It will be the first federal budget in more than two years and Freeland’s first budget as finance minister

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OTTAWA – Canadian Finance Minister Chrystia Freeland said on Tuesday that the first federal budget in two years, to be presented on April 19, would provide the support needed for those struggling during the pandemic, as well as a plan to boost the growth.

“We will continue to do whatever it takes to support Canadians and Canadian businesses. And we have a plan for jobs and robust growth, ”Freeland said when she announced the date during Question Period in the House of Commons.

The Liberal government did not pass a budget last year because it said the outbreak of the COVID-19 pandemic, in which the federal government provided billions of dollars in aid, made it impossible to predict the amount of expenses needed.

But in a November budget update, Prime Minister Justin Trudeau said once the virus is under control, the government will invest up to $ 100 billion (US $ 79.6 billion) over three years to ” relaunch ”the recovery.

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After the Canadian economy shrank 5.4% last year, the International Monetary Fund (IMF) sees the country’s economic growth rebound by 4.4% this year. The government has said the first tranche of the stimulus promised in November will be in the budget.

This stimulus will end once the economy recovers, in which case Canada will resume a “prudent and responsible fiscal path,” the finance ministry said in November.

Also in November, the government forecast the budget deficit to reach an all-time high of $ 381.6 billion ($ 304 billion) in the current fiscal year, which ends at the end of this month. Canada’s fiscal year runs from April to the following March.

The IMF urged Canada to adopt a “fiscal anchor” to preserve the credibility of the government’s management of public accounts.

Federal debt as a percentage of GDP will peak at 52.6% in 2021-22, then decline in subsequent years, the government announced in November.

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