Setting the stage for what’s next.
The federal government is expected to release its budget (Budget 2021) this spring. This will be the first budget tabled since March 19, 2019, before the Liberal government was re-elected, and comes at a time of economic uncertainty caused by the pandemic.
Since the pandemic began in early 2020, some sectors have rebounded and are performing relatively well. Yet others are still struggling to survive, with many Canadian businesses having closed over the past year. As a result, the federal government has spent heavily to combat the negative economic impact of the pandemic and to support Canadians and Canadian businesses. It’s difficult to predict what the government’s economic plan might look like as the country works to spark an economic recovery while managing the significant debt that has accumulated.
Setting the stage: Economic overview
Since COVID-19 began its spread in March 2020, its impact has reverberated across the Canadian economy. Individuals and businesses, from the largest cities to the smallest communities, have been affected—however, the impact has been varied, making it particularly difficult to deal with the economic fallout. While some communities have opened up and life is returning to normal, others are still labouring under restrictions. Compounding this problem, delays in COVID-19 vaccine deliveries and new variants of the virus continue to create uncertainty as to when the country will truly be on the road to recovery.
Visit Budget 2021 to get the latest information and analysis on provincial and federal budgets.
Access the full Pre-budget alert to learn more:
Watch our Looking Ahead: The 2021 Federal Budget video to hear what Grant Thornton’s Tara Benham (National Tax Leader) and Mike Stubbing (Business Unit Tax Service Line Leader) have to say about the upcoming federal budget.