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OTTAWA—Today the Canadian Centre for Policy Alternatives (CCPA) released the Alternative Federal Budget (AFB) fiscal stimulus plan, a one-year package that would create 407,000 jobs, boost the economy by 3%, and help protect Canadians from the worst of a recession.
Consistent with recommendations by the IMF and OECD, the plan injects $32.9 billion (or 2.1% of GDP) into Canada’s economy to protect Canadians who experience loss of income, as well as strengthen and build hard and soft infrastructure to address the challenges of climate change, income inequality, and aging populations.
“We’ve laid out a bold and achievable set of initiatives that can protect Canada from the economic storm while building for future generations,” says CCPA Senior Economist Armine Yalnizyan. “Our plan creates jobs and gives the economy a jolt of life just when it needs it – now.”
The AFB Plan’s impact on job creation and GDP has been validated by Informetica Limited’s macro-economic model.
Key investments outlined in the plan include:
- $12.4 billion to protect the most vulnerable Canadians with investments in fixing EI so more out of work Canadians receive benefits, poverty reduction, and income supports for seniors, children, and the working poor;
- $14.7 billion to strengthen and build infrastructure with investments in municipal infrastructure, affordable housing, child care, and post-secondary education; it also honours the First Nations Kelowna Accord;
- $5.8 billion to prepare for the future by investing in green infrastructure, training and education, and energy retrofits.
“This stimulus package is good for Canadians and it’s smart economics,” says AFB Coordinator David MacDonald. “Simply put, government spending initiatives outlined in this Plan provide far more job creating stimulus than across-the-board tax cuts. People who have jobs spend; people who lose them do not.”
The CCPA will release the full Alternative Federal Budget document later this month.
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