Americas

TAKEAWAYS Canada 2021 budget in numbers

3 minute read

April 19 (Reuters) - Canadian Finance Minister Chrystia Freeland unveiled the country's first budget in two years on Monday with a big focus on spending to pull the economy out of the pandemic slump.

Highlights from the 2021 budget.

STORIES: read more

LINK: https://budget.canada.ca/sites/2021/Media/B2021-april19-eng.pdf

* Proposes C$101.4 billion ($81.1 billion) investments over three years to help boost the economy

* Proposes almost C$30 billion over the next five years to help set up a boost Canada-wide early learning and child care system with the provinces

* Proposes a combined C$17.6 billion investment to boost green technologies and fund initiatives like interest-free loans to homeowners to improve energy efficiency

* Plans to boost Canada's greenhouse gas emissions reductions target to 36% from 2005 levels by 2030 from the previous target of 30%

* An investment tax credit for capital invested in Carbon Capture, Utilization and Storage projects to cut emissions by at least 15 megatons of CO2 annually

* To raise C$5 billion in an inaugural green bond

* Proposes C$3 billion investment to boost long-term care facilities

* Proposes a C$15 an hour minimum wage for federally regulated industries

* To introduce a new annual national 1% tax from Jan 1, 2022 on vacant or underused property owned by non-resident, non-Canadians

* Proposes 3% digital services tax starting from 2022

* Proposes new luxury tax on new cars and private aircraft worth more than C$100,000 and pleasure boats worth more than C$250,000

* Estimates 2020-2021 deficit at C$354.2 billion, less than the C$381.6 billion previously forecast. The deficit should narrow to C$154.7 billion in 2021-22, declining to C$30.7 billion in 2025-26

* Federal debt expected to peak at 51.2% of GDP in 2021-22 before declining to 49.2% of GDP in 2025-26

* Foreigners owning property in Canada would be required to file annual declaration with the Canada Revenue Agency regarding each Canadian residential property they own

* To target tax evasion and close significant tax loopholes that allow multinationals to "jurisdiction-shop".

* Seeks to raise C$2.1 billion over five years by hiking

tobacco excise duty by C$4 per carton of 200 cigarettes

($1 = 1.2510 Canadian dollars)

Compiled by Denny Thomas in Toronto; Editing by David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters