OTTAWA — The Federal Liberal Party is betting that billions of debt will be rewarded for economic growth by helping thousands of workers find jobs and help small businesses adapt to changing consumer behavior.
Today’s government budget estimates that all spending should create or maintain jobs for about 330,000 people next year, adding about 2 percentage points to economic growth.
The biggest contributors are $ 30 billion over five years, in addition to existing planned childcare spending, to reduce licensed day care rates and ultimately reach $ 10 a day by 2026.
Broadband infrastructure also has more money, with over $ 1.6 billion to keep small businesses from being left behind in online shopping.
A year after the record $ 354.2 billion deficit caused by the pandemic, this year all extra spending on a few new taxes will send the deficit to $ 154.7 billion.
But first, liberals plan to keep the emergency aid tap open, at least until the fall, as labor markets and businesses continue to struggle with the weight of COVID-19.