Finance Canada: No More Spring Budgets

Finance Canada announced on October 7 that Canada’s federal budgets will be brought down in the fall starting with the November 4, 2025 event; a significant departure from the spring schedule (February, March or April) that has been the cycle for several decades. This is going to affect many other events as we know them, and in the annual government spending approval cycle. There will also be a new budget process for capital vs. operational expenses. Here’s what you need to know:

It doesn’t come as a shock: but a new survey from Ipsos and MNP Ltd show just how significantly Canadians are struggling financially as a result of the pandemic. Scarier still, many aren’t sure what their next steps are to regain their financial footing once the extended CERB period finally runs out if their job situation hasn’t changed.

The government responded quickly to get money to Canadians affected financially by the pandemic, with new and updated measures and benefits occurring regularly throughout March and April. What was implemented? Learn more as we consider the cost with the release of the Federal Government’s July 8 Economic Snapshot.

The pandemic has had a significant economic impact. Here’s a summary of the major pandemic response benefits extended by the federal government to help businesses weather the storm.

Today the federal government’s “Fiscal Snapshot” provided insight into the costs of the Emergency Pandemic Benefits designed to provide financial relief to individuals and businesses struggling during these tough times. One of them was the extension of personal income tax filing deadlines, and the waived T1 late filing penalties until September 1, despite maintaining a formal deadline of June 1. What did tax pros think about this when we asked them in our June poll?

It’s a good news/bad news story.  First the bad news:  On June 24, international credit ratings agency Fitch, one of three big credit rating firms based in the U.S., downgraded Canada’s pristine Long-Term Foreign Currency Issuer Default Rating rating from triple A to AA+ because of our greatly increased government debt.  It expects that debt will rise to 115.1% of gross domestic product (GDP); an increase of 88.3%  in 2020 over 2019 results.  So, what’s the good news? 

June 30 is not typically a tax filing milestone, but this year is an exception as it is the extended GST/HST deadline for businesses. What needs to be filed, and what’s due next week?