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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

James Hill Elementary has recorded a COVID-19 exposure. (Google photo)
James Hill Elementary School records COVID-19 exposure

Seven Langley schools are Fraser Health exposure list

Two vehicle incidents eastbound on the Trans Canada Highway have been reported in Langley. (Google photo)
TRAFFIC: Two separate vehicle crashes on Highway 1 in Langley, one person taken to hospital

University Drive is closed between 216th Street and Glover Road

Langley Township Civic Facility. (Langley Advance Times files)
Housing, RCMP, Fort roads all discussed at Langley Township budget meeting

A Monday meeting touched on priorities for this year and beyond

East Maple Ridge resident Maureen Jeknavorian capture a few pictures of life along the Fraser River, while walking through Derby Reach Regional Park recently, including a tug hauling a load down west along the river. (Special to Langley Advance Times)
SHARE: Shoreline view shows action on the water

Send us your photo showing how you view Langley, and it could be featured in a future edition

Table for sale took a bit more work than first thought. (Mariana Aramburu/Special to The Star)
Ryan’s Regards: Clearing the clutter

Most New Year’s resolutions are abandoned by this point in the year

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C. adjusts COVID-19 vaccine rollout for delivery slowdown

Daily cases decline over weekend, 31 more deaths

Abbotsford’s Canwest Aero Inc. is offering two pilot training scholarships to celebrate the company’s opening at the Abbotsford International Airport
Abbotsford aviation company offering two free pilot scholarships

Canwest Aero Inc. giving away pair of scholarships valued at $2,500 each

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
COVID rapid tests in long-term care key during vaccine rollout: B.C. care providers

‘Getting kits into the hands of care providers should be a top priority,’ says former Health Minister

Island Health chief medical officer Dr. Richard Stanwick receives a first dose of Pfizer vaccine, Dec. 22, 2020. (B.C. government)
B.C. turns to second doses of COVID-19 vaccine as supplies slow

Pfizer shipments down until February, to be made up in March

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

B.C.’s Ministry of Advanced Education and Skills Training announced funding to train community mental health workers at four B.C. post-secondary institutions. (Stock photo)
B.C. funding training of mental health workers at four post-secondary institutions

Provincial government says pandemic has intensified need for mental health supports

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
No Pfizer vaccines arriving in Canada next week; feds still expect 4M doses by end of March

More cases of U.K. variant, South African variant found in Canada

Health-care workers wait in line at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians who have had COVID-19 should still get the vaccine, experts say

Pfizer-BioNTech and Moderna vaccines were found to have a 95 per cent efficacy

Most Read