Close X
Monday, November 25, 2024
ADVT 
National

Disability aid to cost $792 million, says PBO

Darpan News Desk The Canadian Press, 26 Aug, 2020 07:46 PM
  • Disability aid to cost $792 million, says PBO

The parliamentary budget office says a one-time payment to people with disabilities this fall will cost the federal treasury $792 million.

The majority of that amount will go to about 1.67 million people in payments of up to $600, which the Liberals say are aimed at offsetting any extra costs linked to the COVID-19 pandemic.

The total cost should hit federal books this year, but the budget office warns there may be potential fiscal impacts in subsequent years.

The first legislative push to provide the special payments failed in June when the minority Liberal government couldn't gain opposition support for a wider spending bill.

A few weeks later, a compromise was struck whereby the Liberals expanded eligibility for the payments to also include veterans.

Payments will max out at $600, drop to $300 for any recipients who receive old age security benefits, and fall to $100 for low-income seniors who receive OAS and the guaranteed income supplement.

The report from the budget watchdog Wednesday notes its estimate on the number of people eligible to receive the payments could be thrown off a bit by a separate part of the federal response to the pandemic.

That is because one of the requirements for payments is to be eligible for the disability tax credit, or having applied for the credit by Sept. 25.

The PBO report says the government's extension for filing personal income tax returns could reduce the rate at which people recertify for the credit, but calls it a minor source of uncertainty.

The budget office has been independently tracking federal spending through the pandemic to provide its own analysis over the accuracy of government projections.

It updated one of those projections this week in regarding to a special paid leave for federal employees, known as pay code 699.

The policy gives federal workers paid time off for emergencies such as having to quarantine with COVID-19 or to care for children or other dependants, and doesn't require them to use up vacation or sick days first.

Adding in data from June, the budget office estimates that paid leave has cost the government $828 million since March, inclusive of pension and other benefits. That works out to an average of $3,430 per worker who accessed the leave over that time.

The figures also include estimates for departments that haven't provided data to the budget office.

The report says the number of hours claimed under the policy is "almost certainly an underestimation of the loss of work hours due to the pandemic."

Use of the policy has dropped from a peak of 72,700 federal workers in April to just over 43,300 in June, the PBO says. The Canada Revenue Agency continues to have the largest share of workers using the leave.

"The Canada Revenue Agency was able to continue many of its core operations despite claiming by far the most hours of 699 leave. This is due to a strong culture of monitoring time spent on specific activities," the budget office wrote on its website.

"It is therefore highly likely that other federal organizations not completing core operating functions like meeting legislated timelines for access-to-information requests are severely under-reporting the extent of hours of work lost due to the pandemic."

MORE National ARTICLES

Liberal MPs say they support prorogation

Liberal MPs say they support prorogation
Liberal MPs were surprised by Prime Minister Justin Trudeau's decision to shut down Parliament Tuesday, but many say they believe it was the right call to hit the reset button and deliver a new throne speech, given how COVID-19 has changed the political and economic landscape.

Liberal MPs say they support prorogation

Federal government to join assessment of B.C. coal mine

Federal government to join assessment of B.C. coal mine
The federal government has announced it will join in an environmental assessment of a major expansion to a proposed southern British Columbia coal mine.

Federal government to join assessment of B.C. coal mine

Doctors brace for flu season during COVID-19

Doctors brace for flu season during COVID-19
The president of the Canadian Medical Association is warning that the collision of COVID-19 and cold and flu season could bring a new host of health-care challenges when the cold weather sets in.

Doctors brace for flu season during COVID-19

WATCH: "Trudeau Spineless" Said Conservative Andrew Scheer as Parliament is Prorogued

WATCH:
No confidence motion may trigger a Federal election in Canada.

WATCH: "Trudeau Spineless" Said Conservative Andrew Scheer as Parliament is Prorogued

WATCH: Wild Fires Out of Control As Residents Flee | Back To School Concerns | Canucks

WATCH: Wild Fires Out of Control As Residents Flee | Back To School Concerns | Canucks
BC fires in the Okanagan out of control. COVID-19 cases rising for BC worrying health officials.  Parents worried about back to school amidst pandemic. Canucks hoping for a win against the St Louis Blues at Rogers Place tonight.

WATCH: Wild Fires Out of Control As Residents Flee | Back To School Concerns | Canucks

B.C. teachers' union calls for smaller classes

B.C. teachers' union calls for smaller classes
The B.C. Teachers' Federation wants the province to reduce class sizes and make the use of masks mandatory wherever physical distancing isn't possible as part of its back-to-school plan.

B.C. teachers' union calls for smaller classes