Fiscal update adds debt to keep economy active
It’s clear that we will be dealing with the pandemic for many months to come, even as optimism grows over the imminent distribution of vaccines. On Monday, the federal government gave a fall fiscal update that included news about an economic stimulus war chest as well as important changes to the emergency wage subsidy.
Canada’s deficit will be close to $400 billion by the end of the fiscal year. To help the economy recover once the pandemic begins to wane, the government is setting aside $100 billion for stimulus.
The Canadian Chamber of Commerce, which has been one of the federal government’s key advisors, released a statement regarding the update. The Chamber has called on government to tailor its support to the most vulnerable sectors, and to have a plan to move beyond subsidies.
“Without strong and prolonged economic growth to resolve the country’s growing public debt, Canada’s growing obligations will adversely affect prosperity for future generations,” the Canadian Chamber said in its statement.
Canada’s deficit will be close to $400 billion by the end of the fiscal year. To help the economy recover once the pandemic begins to wane, the government is setting aside $100 billion for stimulus.
The Canadian Chamber of Commerce, which has been one of the federal government’s key advisors, released a statement regarding the update. The Chamber has called on government to tailor its support to the most vulnerable sectors, and to have a plan to move beyond subsidies.
“Without strong and prolonged economic growth to resolve the country’s growing public debt, Canada’s growing obligations will adversely affect prosperity for future generations,” the Canadian Chamber said in its statement.
