By Canadian Press

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

Dec 16, 2020 | 6:37 AM

OTTAWA — Parliament’s spending 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 that 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.

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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.

This report by The Canadian Press was first published Dec. 16, 2020.

The Canadian Press