HIGHLIGHTS FROM THE 2021 BC BUDGET – A BUSINESS FUNDING PERSPECTIVE

April 22, 2021

In Canada Funding Program News Budget Release British Columbia

Budget 2021 focuses on protecting the health and safety of British Columbians, while providing the supports people and businesses need.

 

highlights 

Key Economic Forecasts:  Deficit of $8.1B; GDP forecast to grow 4.4%; Unemployment rate at 7.5%. 

BC 2021 Budget Highlights 

B.C. Finance Minister Selina Robinson presented the 2021 provincial budget, emphasizing that healthy people, communities, and strong recovery must all come hand in hand.   With a recognition that recovery will be an ongoing process for the province, Minister Robinson outlined the critical funding and supports the government will deploy to ensure a brighter future for British Columbians moving forward.  The budget outlined an array of supports for families and individuals, strategic investments to assist businesses in recovery and growth, investments in clean technology and community infrastructure, job creation and skills training, as well as funding measures focused on healthcare and Indigenous communities.  Balancing a continuance of COVID-19 relief programming with a focus on economic growth and key strategic investments, the budget maps out the province’s path to a "stronger B.C. for everyone." Some of the initiatives include: 

Business: 

  • $35M in 2021-22 to support farmers in accessing and accommodating temporary foreign workers for crop harvesting 
  • $195M in continued support for the Small and Medium Sized Business Recovery Grant Program  
  • $120M from the pandemic contingencies to support the recovery of the tourism sector, including $20M for more community-destination development grants for enhanced tourism infrastructure 
  • $60M for the Centre of Innovation and Clean Energy to support the commercialization and development of clean tech 
  • $519M for CleanBC’s Program for Industry to support industries transitioning to low carbon technology, including both forestry and mining 
  • $150M for an Increased Employment Incentive tax credit for those who increased hiring or wages in the fourth quarter of 2020 
  • A PST Exemption on select equipment and machinery until the end of September 2021 to support business in pivoting or upgrading operations 
  • $10M investment in Grow BC, Feed BC to support farmers access land and expand local food production, as well as increases the use of provincially grown and processed foods in government facilities like hospitals and schools 
  • $6M over three years to support the recovery of arts and culture organizations 
  • $500M for InBC Investment Corp. over three years to attract and anchor high-growth business, talent and quality jobs 
      

Municipalities and Communities: 

  • $3.6B over 10 years for infrastructure spending 
  • $100M in 2021-22 for community Infrastructure; BC 150 Community Grants; and CleanBC recovery 
  • $506M to CleanBC to combat the effects of climate change including: 
  • $130M in incentives to support zero-emission vehicles and associated infrastructure, including school busses, governmental fleets and more. This funding pool includes $18M for active transportation infrastructure 
  • $11M to develop and fund a program for local governments to plan for energy-efficient communities 
  • $46M for energy-efficient buildings and communities 
  • Establishment of base $40M over 10 years for BC’s connectivity strategy 
  • $256M to extend supports and services for those experiencing or at risk of homelessness 
  • $30M for ongoing housing support costs associated with temporary shelter acquisitions 
  • $111M to expand the low-to no-cost childcare program 
  • $233M increased in base funding over three years for new childcare spaces 
  • $100M for the BC Recovery Benefit 

Reconciliation: 

  • $60M base budget to support indigenous initiatives 
  • $59M for cultural safety and humility training for health and mental health and addiction services 
  • $20M in rural economic recovery grants to support job creation in construction for Indigenous and local governments 
  • $17M to support the implementation of the Declaration Act and commitments under existing reconciliation agreements, including land transfers, over three years 
  • Commitment to funding for culturally-based childcare through the Aboriginal Head Start program and Indigenous skills training initiatives 

Emphasizing the importance of protecting the safety and well-being of British Columbians, the provincial government has also elected to reserve $1.1B for unanticipated health and recovery measures related to the pandemic. Additional health-related spending initiatives will include investments in mental health and addictions supports with a focus on children and youth, the expansion of urgent primary care and PharmaCare, and increased spending on preventative measures related to COVID-19. 

The province plans to increase minimum wage to $15.20/hr by June 1, 2021 and has also delegated $16M in support of the court modernization strategy, amongst other measures. 

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