Finance Minister Chrystia Freeland tabled the Liberal Government’s much anticipated 2021 budget. This Special Report highlights proposed government initiatives and tax proposals of greatest interest to our members and their clients. We extend our thanks to CALU tax advisors Kevin Wark and Angela Ross for their work in preparing this summary.
On April 19, 2021, Finance Minister Freeland tabled her first federal budget (“Budget 2021”), entitled “A Recovery Plan for Jobs, Growth, and Resilience.” This is the first federal budget in over two years and contains a number of platforms and spending initiatives designed to address both pandemic-related issues and the government’s vision for Canada post-pandemic. At a whopping 724 pages, this budget not only addresses the current needs of a country labouring under the third wave of the pandemic but also establishes a number of new government programs including funding for a national childcare program. While it is unlikely this budget will topple the government, it does set the stage for a possible federal election in the fall. All told, this is a spending budget and not a taxing budget. Paying for the costs of pandemic spending and the new initiatives announced in Budget 2021 will likely be left for the next majority government.
This CALU Special Report provides information about tax proposals of greatest interest to CALU members.