Parliamentary Budget Officer Yves Giroux waits to appear before the Commons finance committee on Parliament Hill in Ottawa on March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Parliamentary Budget Officer Yves Giroux waits to appear before the Commons finance committee on Parliament Hill in Ottawa on March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Budget officer says federal wage-subsidy program may cost more this year than planned

Parliamentary budget officer Yves Giroux’s office says the figure for this year could be closer to $85.5 billion

Parliament’s budget watchdog estimates the Liberals will spend more this year on a wage-subsidy program than expected, but less in 2021.

The Liberals estimated last month the program would cost $83.5 billion this fiscal year when taking into account take-up through the summer and its extension since the fall.

Finance Minister Chrystia Freeland’s fall economic statement also estimated the program would cost almost $16.2 billion in the coming fiscal year that starts in April 2021.

Parliamentary budget officer Yves Giroux’s office says in a report today that the figure for this year could be closer to $85.5 billion and nearly $13.9 billion next year.

The report says estimates about program take-up are subject to a degree of uncertainty about the path the pandemic will take and how it affects the economy overall.

The most recent figures for the program show the government has paid out just over $54 billion in subsidies designed to keep employees on payrolls at 368,240 companies.

The Liberals announced last month they would extend the wage subsidy into next year, and bring the amount it covers up to 75 per cent of business payroll costs, which had been a key ask from hard-hit sectors like tourism.

The fall economic statement also extended the business rent subsidy to mid-March, updating a program that had low take-up previously because the money flowed through landlords in the form of loans, which property owners showed little interest in taking.

The economic statement forecasted the revamped commercial rent-relief program will cost $2.18 billion this fiscal year.

Giroux estimates the cost to be just under $3 billion this fiscal year, and almost $1.6 billion next fiscal year.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Coronavirus

Just Posted

The first Pfizer-BioNTech COVID-19 vaccine dose in Canada is prepared at The Michener Institute in Toronto on Monday, Dec. 14, 2020. THE CANADIAN PRESS/Frank Gunn
One death, 39 new cases of COVID-19 in Interior Health

There are 484 active cases of the virus in the region currently

Pictured is Britany Bignham, a Cranbrook hairstylist who is one of 16 top stylists in the running for the Ultimate Stylist competition - an online international hair and beauty competition. She is pictured behind her chair at the Hair Mob. (Corey Bullock/Cranbrook Townsman file)
Cranbrook hairstylist vies for top prize in international competition

Britany Bingham is one of 16 finalists in the Ultimate Stylist competition

Kimberley RCMP detachment seeking information after female teenager grabbed by masked man.
Teenaged female grabbed by masked man on Kimberley trail

RCMP seeking witnesses or information

Brenda Ware. (RCMP)
Murder charge laid against man in Kootenay National Park homicide

Philip Toner was located in Lake Country on May 11

City staff has passed an order requiring remedial action on a building that was severely damaged by fire last fall. Trevor Crawley photo.
City council orders remedial action on vacant buildings damaged by fire

City council has issued a remedial action order relating to vacant buildings… Continue reading

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 rate creeps up again, 600 new cases Wednesday

One more death, 423 people in hospital with virus

B.C. Agriculture Minister Lana Popham takes questions in the B.C. legislature in 2017. (Hansard TV)
UPDATE: B.C. will fund another year of fresh fruit, vegetables, milk in schools

John Horgan government working on school meal program

Surrey RCMP is releasing sketches of a suspect in an “indecent act” at the Coyote Creek Elementary playground on April 30, 2021. Police said the suspect was clean-shaven “during some interactions” and on “other occasions had stubble outlining a goatee and mustache.” (Images: Surrey RCMP handout)
Vancouver mayor-elect Kennedy Stewart addresses supporters in Vancouver on Sunday, Oct. 21, 2018. THE CANADIAN PRESS/Darryl Dyck
Vancouver mayor says there’s no time to redo details of drug decriminalization plan

Kennedy Stewart says a federal election could see the small window of opportunity close on the city’s bid for an exemption from criminal provisions on simple possession of small amounts of drugs

Premier Mike Horgan received his first dose of a COVID-19 vaccine. (Facebook/John Horgan)
More than 50% of people eligible in B.C. have received 1st vaccine dose

‘We’ve made extraordinary progress together over the past few weeks,’ says Premier Horgan

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read