Federal Finance Minister Chrystia Freeland delivered the federal government's fiscal update on November 30.

In it, the federal government said it expected the deficit to balloon to as much as $381.6 billion—with the further possibility that a resurgence of the novel coronavirus could push that figure as high as $400 billion. The finance department also said it expects the deficit to be wrestled under control by 2025–26 where the deficit improves to below $25 billion.

“Minister Freeland has highlighted the importance of rolling out a vaccine and providing additional support to households and businesses through what will be a tough winter for many Canadians,” said Pedro Antunes, senior economist at the Conference Board of Canada. “The additional spending coupled with a lasting negative hit to government revenues will add copiously to the federal debt—boosting the net debt-to-GDP ratio from 35 percent pre-COVID to around 54 percent over the medium term. If debt financing costs remain low, the federal government can manage but there’s no doubt that the COVID-19 crisis will constrain federal finances for decades to come.”

Helping to spur the economy over the next three years will be a stimulus package, the value of which has been estimated at between $70 billion and $100 billion. Details were not announced, and may not be until the spring.

Also announced was planned spending of $1.5 billion in 2020–21 to build clean-water infrastructure in those Indigenous communities under long-term drinking water advisories, and $114 million each year after.

The federal government also indicated it would hand out $2.6 billion over seven years to help offset the costs of energy-efficient retrofits. The money would be handed out in the form of 700,000 grants of $5,000 or less to help with projects that could range from energy-efficient heating to solar-panel installations.

The statement also eliminates the interest on repayment of the federal portion of the Canada Student Loans and Canada Apprentice Loans for 2021–22, invests as much as $150 million over the next three years to accelerate the construction of recharging and refuelling stations for zero-emission vehicles across highways, and commits $150 million over three years to Infrastructure Canada to improve ventilation in public buildings.

Since the release of the fiscal statement, several construction groups have weighed in with their feedback.

The Residential and Civil Construction Alliance of Ontario said it was pleased with the contribution of up to $100 billion in stimulus money, but urged the funding be distributed to municipalities as soon as possible.

“While the Fall Economic Statement indicates there will be some relief down the line, that help might come too late,” said board chair Peter Smith. “Cities are in dire straits and, as a result of increased costs due to COVID-19, are being forced to raid their capital funds to balance their budgets.”

RCCAO has said several times that tens of thousands of construction jobs could be in jeopardy if municipalities continue to cut capital spending plans in their ongoing efforts to balance their books.

Sean Strickland, CEO of Canada’s Building Trades Unions, added that his organization hopes the federal government will recognize the importance of stimulus spending in getting the Canadian economy back on track.

“While the announcement of $100 billion in future federal stimulus is positive, we must continue to make sure the government is aware of the need to free up the pipeline on infrastructure spending to address the 2021 construction season and ensure that infrastructure investment is seen as a shining light for any kind of stimulus package to build a better Canada,” he said.