A projected decline in the federal deficit in 2021-2022.

Finance Minister Chrystia Freeland delivered the financial and economic update virtually Tuesday afternoon after a pair of her staffers tested positive for COVID-19.

The deficit is projected to hit $144.5 billion, which is down from $154.7 billion estimated in the spring budget.

In the 2022-23 fiscal year, the deficit is projected to sit at $58.4 billion.

Ottawa is committing to spend an additional $8.1 billion to help finish the fight against COVID-19.

Highlights

Allocating $2 billion over two years to the Public Health Agency of Canada (PHAC) to procure COVID-19 therapeutics
$1.7 billion to Health Canada and PHAC to help provinces and territories secure rapid tests and the supplies needed to administer them
$742.4 million in one-time payments to low-income seniors across Canada who saw their Guaranteed Income Supplement clawed back by accepting the Canada Emergency Response Benefit or the Canada Recovery Benefit.
Income tax revenues are projected to be higher by roughly $12 billion per year
Total tax revenues will reach $312.1 billion by the end of the 2021-22 fiscal year, climbing to $391 billion by 2026-27

Ahead of the update, $40 billion was set aside for First Nations child welfare when it comes to residential school compensation.

The money was tabulated after two class action lawsuits were settled, a Canadian Human Rights Tribunal order and long term reform of the Indigenous Child welfare system over five years.