Budget 2021: A recovery plan for jobs, growth, and resilience

April 19, 2021

Updated July 5, 2021

NEW: The Liberal government’s Budget 2021 has received Royal Assent. With a bold plan to finish the fight against COVID-19, ensure a robust economic recovery, and invest in jobs and growth for all Canadians, more support is on the way.

Canada entered the pandemic in a strong fiscal position — and from the very beginning, Justin Trudeau and our Liberal team have continued to put people first and to do whatever it takes to keep Canadians safe, healthy, and supported.

Budget 2021 is an historic investment, and it outlines the next steps in our Liberal government’s work to continue supporting Canadians and fighting the COVID-19 pandemic — including by creating jobs and growing the middle class, funding early learning and child care, building a green recovery for jobs and a cleaner future, and investing in health care.

“This budget is about finishing the fight against COVID-19. It’s about healing the wounds left by the COVID-19 recession. And it’s about creating more jobs and prosperity for Canadians in the days—and decades—to come.” Hon. Chrystia Freeland

COVID-19 has disproportionately affected low-wage workers, young people, women, and racialized Canadians. And it has left many of our communities’ small businesses fighting to survive.

That’s why our Liberal government’s Budget 2021 will invest to address the specific wounds of the COVID-19 recession, put people first, create jobs, grow the middle class, set businesses on a track for long-term growth, and ensure that Canada’s future will be healthier, more equitable, greener, and more prosperous.

Here are a few important highlights:

Finishing the fight against COVID-19 and investing in health care

The Liberal government’s top priority remains protecting Canadians’ health and safety, particularly during this third, aggressive wave of the virus and its variants.

  • Continuing to support vaccine rollout underway across Canada
  • Investing in Canada’s bio-manufacturing and life sciences sector to rebuild domestic vaccine manufacturing capacity, and has a plan to improve long-term care and mental health services.

Creating jobs and growing the middle class

Justin Trudeau has committed that our Liberal government will have Canadian’s backs – and this plan will extend business and income support measures through to the fall. These investments will put the Liberal government on track to meet its commitment to create 1 million jobs by the end of this year.

  • Launching an historic expansion of the Canada Workers Benefit, which is now available to 1 million Canadians and will help lift nearly 100,000 Canadians out of poverty.
  • Investing to support almost 500,000 new training and work opportunities, including 215,000 opportunities for youth.
  • Establish a $15 federal minimum wage
  • Continuing to support businesses in our most affected industries, such as investing $1 billion for the tourism, arts and culture sectors
  • Accelerating investment in digital transformation of small and medium-sized businesses
  • Helping to build, repair, and support 35,000 affordable housing units for vulnerable Canadians
  • Supporting women, Black Canadians, and other underrepresented entrepreneurs who face barriers to launching and owning businesses, through $300 million to enhance initiatives like the Black Entrepreneurship Program and the Women Entrepreneurship Strategy

Funding early learning and child care

Budget 2021 makes a transformative investment to build a Canada-wide early learning and child care system — to drive economic growth, increase women’s participation in the workforce, and offer each child in Canada the best start in life.

  • Aiming to reduce fees for parents with children in regulated child care by 50% on average, by 2022, with a goal of reaching $10 per day on average by 2026, everywhere outside of Quebec
  • Investing almost $30 billion over the next five years and providing permanent ongoing funding

Building a green recovery for jobs and a cleaner future

Budget 2021 is also a plan for a green recovery with real action to fight climate change, including by:

  • Building a net-zero economy by investing in world-leading technologies that make industry cleaner and reduces pollution
  • Helping more than 200,000 Canadians make their homes greener
  • Helping Canada reach its goal of conserving 25% of our lands and oceans by 2025, and creating good middle-class jobs in the green economy along the way

Budget 2021 is a strong and comprehensive plan to bridge Canadians and businesses through this global crisis and towards a robust recovery. By investing in Canadians and taking action to break down barriers to full economic participation, we can ensure that our economy comes roaring back, and that Canada’s recovery leaves no one behind.

READ: Budget receives Royal Assent

Get the full details on Budget 2021