Udayavni Special

Canada predicts historic deficit due to pandemic spending


Team Udayavani, Jul 9, 2020, 7:55 AM IST

Ottawa (Canada): The Canadian government is predicting a historic 343 billion Candian dollar (USD 254 billion) deficit for 2020-21 resulting from its economic and stimulus plans to battle COVID-19.

The amount, included in a fiscal “snapshot” the Liberal government released Wednesday, is a huge jump from the 28.1 billion Candian dollar (USD20.8 billion) deficit projected prior to the pandemic.

The report says that since March, the federal government has spent more than 231 billion Candian dollar (USD 171 billion) on health and safety measures as well as direct aid to Canadians and businesses.

Prime Minister Justin Trudeau defended the government”s spending as a lifeline to Canadians battling to stay afloat.

“We decided to take on that debt to prevent Canadians from having to do it,” he told a news conference.

“I know there are people out there who said we should have done less. I think that”s wrong. Now is the time for the federal government to step up and help Canadians during a historical crisis.”

The national debt is projected to climb to 1.2 trillion Candian dollar (USD 89 billion) while the economy is expected to shrink by 6.8 per cent.

An estimated 5.5 million Canadians have either lost their jobs or have seen their hours reduced.

The debt-to-GDP ratio is expected to rise from 31 per cent to 49 per cent because of the emergency spending.

The government expects unemployment to hit 9.8 per cent this year then fall to 7.8 per cent next year. Unemployment was at a record low of 5.5 per cent in January.

One of the federal benefits is the Canada Emergency Response Benefit which paid 2,000 Candian dollar (USD 1,481) a month to Canadians earning less than 1,000 Candian dollar (USD 740) per month because of the economic shutdown.

The program has paid out 53.5 Candian dollar billion (USD 39.6 billion) in benefits to about 8 million Canadians as of late June.

Finance Minister Bill Morneau said without government action families would have been buried in debt.

“Every investment we made was in response to COVID-19,” he said.

“We worked to make sure our programs left no one behind and we did it fast.”

Trudeau said historically low interest rates will make borrowing costs manageable and allow the government to continue to invest in the economy.

Top News

K’taka COVID-19 update: 7908 new cases; 6940 discharges; 104 deaths on Aug 14

Karnataka govt issues guidelines on Ganeshotsav celebrations

Recovery rate of COVID-19 patients in India best in world, fatality rate lowest: Harsh Vardhan

Bengaluru violence: K’taka govt taking steps towards banning SDPI

India can emerge as great destination for countries searching for import alternatives: Nitin Gadkari

2000 PG medical students will be available for Covid-19 duties soon: Min Sudhakar

Union Home Minister Amit Shah tests negative for Covid-19



Related Articles More

M’luru, Udupi: 600+ new COVID-19 cases, 11 deaths in twin districts on Aug 14

K’taka COVID-19 update: 7908 new cases; 6940 discharges; 104 deaths on Aug 14

Singer SP Balasubrahmanyam health critical, on life support

Russia launched Covid-19 Vaccine ‘Sputnik-V’: Here’s everything you need to know

Scientists decode likely order of COVID-19 symptoms

MUST WATCH

All you need to know about Bangalore Riots!

Classes conducted for students under the Vidyagama project at Karambaru Bhajan Mandir

Gendun Gyatso Lama : Why did I come to India? The race for independence – The Great Escape from China

BSNL Employees Union in Mangalore protest over MP Anant Hegde’s remarks

Rangayya Naik | Atleast once a year do the work of agriculture | Farmer Request

Latest Additions

M’luru, Udupi: 600+ new COVID-19 cases, 11 deaths in twin districts on Aug 14

K’taka COVID-19 update: 7908 new cases; 6940 discharges; 104 deaths on Aug 14

Karnataka Governor Vajubhai Vala’s expresses Independence Day greetings

Karnataka govt issues guidelines on Ganeshotsav celebrations

NSE, IIM-Bangalore join hands to offer platform for investor education

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.