Ottawa announces $6-billion for skilled trades, projects smaller deficit in spring economic update
The Canadian government announced $6-billion over five years to support skilled trades training and recruitment as part of its spring economic update. Finance Minister François-Philippe Champagne revealed an improved deficit forecast, projecting $66.9-billion for 2025-26, $11.5-billion lower than previously estimated. The update includes measures like CPP premium reductions, GST credit boosts, and gas tax breaks, aiming to address affordability and labor shortages amid major infrastructure plans.
- ▪The government is investing $6-billion over five years in the skilled trades through wage subsidies, training grants, and bonuses for Red Seal certification.
- ▪The projected deficit for 2025-26 is $66.9-billion, an $11.5-billion improvement from the November budget forecast.
- ▪Starting in 2027, Canada Pension Plan contribution rates will drop to 9.5% from 9.9%, saving employees and employers about $133 annually each.
- ▪The economic update includes $40-billion in preannounced measures over six years, including enhanced GST credits and temporary gas tax relief.
- ▪The government now delivers its budget in the fall and a spring economic update, reversing the previous fiscal reporting schedule.
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Open this photo in gallery:Finance Minister François-Philippe Champagne and Prime Minister Mark Carney before delivering the spring economic update on Tuesday in Ottawa.Justin Tang/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountFinance Minister François-Philippe Champagne released a spring economic statement Tuesday that accounts for more than $54-billion in new spending over six years, while still beating Ottawa’s deficit targets thanks to improved growth forecasts.Much of that new spending includes recent multibillion-dollar announcements such as boosting the GST credit and a short-term break on gas taxes.The major new funding announced for the first time Tuesday includes about $6-billion over five years for a package of incentives…
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