Budget 2021 Preview: Balancing Pandemic Support, Growth Spending While Keeping Debt Manageable
Hard to unwind some COVID-19 response programs as economy heals, says budget watcher
News Analysis
A key dynamic for the April 19 federal budget—the first in over two years—will be how the government expects to balance economic support, as the pandemic’s third wave intensifies, with the $70 billion to $100 billion it earmarked in stimulus spending last fall.
In response to COVID-19, the feds launched a number of programs to support businesses and Canadians that were meant to be temporary. Unwinding them could prove unpopular, and at stake is how much of those programs become permanent, said Macdonald-Laurier Institute senior fellow Philip Cross, a former chief economic analyst at Statistics Canada.