Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Liberals to release federal budget with eye on managing crisis, post-pandemic growth

There is a political element to the budget, as feds need to find at least one other party to support it

The federal government will this afternoon unveil its spending plans to manage the remainder of the COVID-19 crisis and chart an economic course in a post-pandemic Canada.

The Liberals’ first budget in two years is expected to outline the government’s plans for a national child-care system, including what strings will be attached to any spending.

There are also expected to be measures to boost the supply of affordable housing and money aimed at greening the economy as the Liberals look to chart a path for promises on climate change.

Meanwhile, Finance Minister Chrystia Freeland is being asked by provinces for more health-care money to manage the ongoing pandemic and future costs, while hard-hit businesses, charities and workers are looking for a pledge to keep aid flowing beyond the summer when many programs are slated to end.

There is also a political element to the budget, as the government needs to find at least one other major party to support the document in confidence votes in the House of Commons.

Without a parliamentary dance partner, the government would fall and the country would be plunged into a federal election campaign.

Elliot Hughes, a one-time adviser to the last Liberal finance minister to table a budget, Bill Morneau, said this budget should balance Canadians’ present concerns about the pandemic with longer-term economic needs.

The document will also likely outline the Trudeau Liberals’ vision for the country that will, in turn, give opposition parties a chance today to lay out their own ideas to voters, he added.

“It’s for people to reflect and see and think, ‘What kind of approach by government best suits me and who do I want leading, frankly, in the years to come as we emerge from the pandemic?’ ” said Hughes, now with Summa Strategies.

The deadly virus has led to economic restrictions that in turn forced the closure of non-essential businesses, schools and daycares, causing a historic slide in employment.

There was an equally historic flow of federal aid to brace the financial foundations of businesses and households, with today’s budget detailing last year’s deficit that was last estimated to be $380 billion.

Although the economy overall has done better than previously expected, there are still pockets of hurt in the country with sectors highly reliant on in-person interactions, such as restaurants and tourism, looking at a long recovery.

Public confidence, too, is being shaken in government as Canadians feel under siege in the face of a third wave of COVID-19, said Kathy Brock, a professor at Queen’s University’s school of policy studies.

“They’re looking at this budget to say, ‘Well, what can government can do and what is government going to do to help citizens, to help sectors of the economy?” ” Brock said.

The Liberals’ favoured fiscal guardrail to keep spending from going off the rails — the debt-to-GDP ratio — has itself gone astray. The government should work to stabilize the figure and outline a plan to eventually reduce it, said RBC senior economist Josh Nye.

“It’s going to take an extremely long time to get back to the levels that we saw pre-pandemic,” he said. “Certainly making sure things are moving in the right direction, I think that’s something that investors and rating agencies will want to see.”

READ MORE: Election reticence expected to temper political battle over federal budget

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Coronavirusfederal budgetLiberals

Just Posted

Send your letter to the editor via email to news@summerlandreview.com. Please included your first and last name, address, and phone number.
LETTER: Summerland’s lakeshore land should be protected

There is an opportunity to restore this important lakeshore habitat for fish and wildlife

BC Transit is planning several route expansions in Penticton in 2022. (Black Press file photo)
Transit use down in Penticton, multiple route expansions planned for post-pandemic

The number of riders is just over half the peak of January 2020

Police attend house party, then hear shots fired outside the Oliver detachment, with a truck fleeing and set on fire, followed by a pharmacy set on fire early Saturday morning. (File photo)
Shots fired at police, multiple arsons in same night ‘very concerning’ for Oliver RCMP

Police were called to shots fired at a house party, followed by a vehicle and pharmacy set on fire

A garden shed from Allform Construction Inc. will be the prize in a raffle to benefit Agur Lake Camp. The wilderness camp west of Summerland is the only barrier-free camp in British Columbia. (Contributed)
Construction begins on garden shed for Agur Lake Camp raffle

Facility near Summerland is only barrier-free camp in British Columbia

Four windows were broken at Queen’s Park elementary over the weekend. (Google Maps)
Two Penticton schools hit by vandals recently

Queen’s Park elementary had four windows broken over the weekend

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Little but fierce: Cat spotted chasing off coyote by Port Moody police

The black cat is seen jumping out from under a parked car and running the wild animal out of a vacant lot

White Rock’s Marine Drive is being restricted to single-lane one-way traffic to allow more patio space for waterfront restaurants, with indoor dining restricted from the end of March to some time after the May 24 weekend. (Peace Arch News)
B.C.’s COVID-19 infection rate falls to 411 cases Tuesday

360 people in hospital, up slightly, two more deaths

The Banff National Park entrance is shown in Banff, Alta., Tuesday, March 24, 2020. THE CANADIAN PRESS/Jeff McIntosh
Minister asks Canadians to camp carefully in national parks as season starts

Kitchen shelters in Banff National Park closed, trails on Vancouver Island will only be one-way

Passengers on board the Komagata Maru are shown in this undated handout image. The City of Vancouver has issued an apology for its racist role in denying entry to 376 passengers aboard a ship that was forced to return to India over a century ago. Mayor Kennedy Stewart says discrimination by the city had “cruel effects” on the Sikhs, Hindus and Muslims aboard the Komagata Maru, which arrived in Burrard Inlet on May 23, 1914. THE CANADIAN PRESS/HO-Vancouver Public Library
Vancouver mayor says sorry for city’s role in turning away South Asians in 1914

Kennedy Stewart has declared May 23 as the annual Komagata Maru Day of Remembrance

A crew of WestCoast WILD Adventures employees tackled an onslaught of litter left at the ‘Locks of Love’ fence at Wally Creek on May 2. (Anne-Marie Gosselin photo)
Litter woes consume popular ‘Locks of Love’ fence on B.C.’s Pacific Rim

Popular view spot near Tofino plagued by people hanging masks and other unwanted garbage

Kamloops Fire Rescue’s Captain Brian Lannon has been identified as the diver who is presumed to have drowned in Okanagan Lake over the weekend. (Contributed/Kamloops Fire Rescue)
Presumed drowned Okanagan Lake diver identified as Kamloops firefighter

Crews continue efforts to recover Brian Lannon’s body from the lake

Vincent Doumeizel, senior advisor at the United Nations Global Compact on Oceans, as well as director for the Food Programme for the Lloyd’s Register Foundation, pulls up some sugar kelp seaweed off the French coast in April 2020. He was the keynote speaker during the opening ceremony of the inaugural Seaweed Days Festival. (Vincent Doumeizel/Submitted)
Let’s hear it for seaweed: slimy, unsexy and the world’s greatest untapped food source

Experts talks emerging industry’s challenges and potential at Sidney inaugural Seawood Days Festival

A Gofundme campaign is underway for Salmon Arm man Tim Kubash who was injured in an accident on May 5. (Contributed)
Friends step up for Salmon Arm man facing big life reset

Gofundme campaign underway for Tim Kubash after life-altering accident

Troy Patterson, a Cadboro Bay 15-year-old, got a virtual meeting with B.C.’s environment minister months after he started an online petition calling for construction of the Coastal GasLink pipeline to stop. (Jake Romphf/News Staff)
B.C. teen’s 23,000-name Coastal GasLink petition gets him an audience with the minister

15-year-old Saanich high school student and George Heyman discussed project for about 30 minutes

Most Read