COVID or not, Freeland’s budget doesn’t shy away from challenging Canadians on their vision for the future

OTTAWA—Despite the immediate crunch of the third wave, Prime Minister Justin Trudeau’s government shows no signs of backing away from its plan to transform Canada into what many will see as a very different country in the post-pandemic era. In the most impactful budget in recent memory, Finance Minister Chrystia Freeland looked beyond COVID-19 on Monday to preview the greener, fairer Canada the Liberals are hoping voters will endorse for the future. The budget envisions massive spending built on the much-expanded role accorded Ottawa as it acted as the financial first responder for individuals and businesses during the 15-month-old emergency. An exhaustive blueprint for progressive, future-oriented growth that will leave the federal government with a $154-billion budget deficit this year, Freeland’s policy package included large-scale spending on national childcare, seniors’ long-term care, climate action, inclusivity, economic fairness, and business development—as well as increased support to survive the pandemic. There are also major investments designed to push for a more productive, innovative corporate sector, including new tax breaks for small business investment and a Canada Digital Adoption Program to assist some 160,000 businesses with the cost of new technology while also providing a 28,000-strong youth tech corps to help people figure out the software. Overall, Freeland’s strategy is an attempted budget for the ages meant to change Canada’s socio-economic fabric on a long-term basis. “Budget 2021 is an historic investment 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,” a press release accompanying the budget said. It’s a gamble Trudeau didn’t have to take. So far, the prime minister has been given okay marks in the polls for his efforts to protect individuals and the economy during the worst crisis in half a century, and Freeland reinforced the government’s COVID backstop for business and workers in the budget. And the Liberals don’t seem in any imminent danger from an internally divided Conservative Party helmed by a leader with few non-flexible positions. So, the Liberals could have focused for the most part in the budget on providing the financing for another three or four months of pandemic fire-fighting before turning their attention to the recovery. However, whether Freeland felt committed to this budget before the third wave burst upon us in full force or for other reasons, the Liberals are pushing ahead with the dual budget message: COVID aid today plus tomorrow’s strategy for what they see as a better post-COVID Canada. If nothing else, Freeland’s first budget will provide the basis for a Liberal election platform should Trudeau’s minority government be dissolved anytime soon. And the Liberals are clearly taking advantage of the way the virus emergency has undercut the neoliberal austerity fixation that has influenced federal government spending intentions in every budget for the past 30 years. In the face of complaints that Ottawa is spending too much at a time when the economy may be on the way to recovery anyway, the government is taking the position that the hurried return to budget-cutting after the 2008-09 recession by the likes of Stephen Harper slowed the economic bounce-back and prolonged the pain for everyone involved. As of today, Trudeau is staking re-election on the public’s willingness to see the pandemic shock as a turning point and buy into profound change in keeping with the Liberals’ centre-left positions on a host of controversial issues. And Trudeau is betting a fair bit on his ability to work with the premiers. On national childcare and improvements in seniors’ long-term facilities, Ottawa will need the co-operation of the provinces, although on childcare, the commitment of $30-billion in federal cash over five years might help convince otherwise unenthusiastic premiers to go along. A similar situation exists with pharmacare, which rated scant mention in the 740-page budget document other than notes about Ottawa’s ongoing work with the provinces on a possible national drug insurance plan. Viewed from a progressive, environmentally conscious angle, Freeland’s budget is a much-needed, admirable attempt to encourage the creation of a Canada more suited to the needs and risks of the 21st century. But the commitments involved, both financially and psychologically, may be a lot to ask of Canadians at a time when many are still trying to get through the pandemic with their health and finances intact. This budget could be seen in retrospect as brilliant or, alternatively, a misfire. It may depend to a large extent on whether Trudeau and Freeland can convince the public that developing green technology and setting up an early learning and childcare system—while expensive—are not only crucial to improving our livelihoods and living conditions but will also pay hefty economic benefits in the years ahead. Les Whittington is a regular columnist for The Hill Times. The Hill Times