Finance Entrepreneur Wasseem Dirani Explains The New April 19 Canadian Federal Budget
Transparency in government spending is essential to build public trust. The recent announcement on the Canadian federal budget on April 19th, 2021, presented some highlights that reflected the future money allocation for the coming years.
Finance entrepreneur and expert Wasseem Dirani from Hamilton, Ontario, has analyzed previous federal budget announcements in Canadian media over the years. With a deep understanding of how budgets are allocated, he hopes to explain further the implications of these financial reports and how these will impact the residents of Canada.
Prioritizing Early Childhood Education
The Canadian federal budget announced on April 19th emphasized the importance of early childhood education. A total of $30 billion will be spent on this sector in the next five years, while $8.3 billion is allocated for this year.
Finance expert Wasseeem Dirani remarked that this spending is fully justified as a focus on early childhood education and childcare services will empower family units to seek employment opportunities, further fueling the economy. When there are no supports for young children, families resort to a single-income household and lower living standards. There is less revenue per household which also affects the country’s GDP.
Thus, focusing on providing childcare and early childhood services will allow parents and caregivers to leave their children with accredited institutions while they seek and succeed in employment. Another piece of good news about this allocation is a special focus on indigenous families. This will also allow better opportunities for livelihood among indigenous families as the government provides quality and affordable care.
A Focus On Senior Health Care
Another sector that the federal budget will be spent on is long-term health care, especially for seniors. Wasseem Dirani states that this will help families of senior dependents by alleviating some of the financial burden should they need to place their loved ones in long-term care.
The senior population is one of the most affected since the advent of the COVID-19 pandemic. It is rightfully so that they should be allocated enough budget for them to receive quality healthcare. Long-term health care subsectors include assisted living facilities, nursing homes, outpatient medical care, and community supports for seniors.
Hopefully, these areas of long-term care will be given the needed attention in the coming years, thanks to the additional $3 billion budget.
Higher Minimum Wages
Another good news for Canadian residents is the raising of minimum wages all over the country. To pair with inflation, introducing new legislation for all employees to receive a minimum salary of $15 per hour will commence.
There are also provisions that territorial and provincial minimum wages can be higher for workers to adequately support their households. Dirani explains that the increased minimum wages will also uplift the standard of living for working entry-level jobs. Increasing one’s salary also ensures that:
Canada will preserve employee quality: Higher wages ensure less employee turnover, allowing people to keep their jobs for the long term.
Households are better provided for: Whether a single or multiple-income household, Canadian residents will be better provided when hourly wages increase.
Improved cash flow: Cash flow is necessary for businesses, employees, and the government to allocate proper resources that are mutually needed. When employees are given higher wages, they will benefit businesses that offer products and services, thereby boosting the economy which the government needs.
Narrowing Economic Gaps for Residents
Canada has a rich demographic of indigenous and non-indigenous residents. For many decades, the indigenous people have received the shorter end of provisions from the government, which indicates a wide gap in their standard of living compared to the non-indigenous residents.
The federal budget includes special attention to these marginalized demographics, aiming to close the gap between the socioeconomic status of indigenous and non-indigenous residents. A total of $18.5 billion will be spent in the next five years for this objective. Some goals include improving infrastructure, bringing justice to the high number of cases involving violence against indigenous women, educational resources, and employment opportunities.
Wasseem Dirani also considers this a great move by the Canadian government, as a good indicator of a prosperous nation is people of equally comfortable living standards.
Tax Changes For Luxury Items
To have efficient tax allocation, there will be new laws imposed on the percentage of taxes among items such as luxury vehicles, personal aircraft, and other high-ticket luxury goods.
Hopefully, these changes will help extract more budget taken from taxes, providing more allowance for spending in underserved sectors.
Federal Budget: A Path to Recovery
With the impact of COVID-19 and its accompanying economic struggles, finance expert Wasseem Dirani explains that these federal budget highlights can truly help Canadians recover. He hopes that these budget allocations will be followed through in the coming years, giving relief while providing better opportunities for the country’s residents.
This article does not necessarily reflect the opinions of the editors or the managment of Econotimes