Lat November 30, Minister of Finance Chrystia Freeland tabled the long-awaited Fall Economic Statement 2020 in the House of Commons, as COVID cases are rapidly increasing across the country and deep economic uncertainty persists.
The statement provides a detailed overview of Canada’s fiscal position and presents new details on COVID-related relief measures. The federal government also reaffirms its Throne Speech commitment to continue supporting the economy and the hardest-hit businesses through this crisis while laying the groundwork for the post-pandemic stimulus and long-term liberal priorities, such as pharmacare, national affordable child care and addressing climate change.
The deficit is estimated to reach a historic high of $382 billion for the fiscal year 2020-2021 before decreasing gradually to $121 billion in 2021-2022 and $51 billion in 2022-2023. The total debt will balloon to over $1.1 trillion in 2021, representing over 50% of the national Gross Domestic Product (GDP).
Government revenues, including personal income tax and corporate income tax, are expected to decrease significantly while expenses are rapidly increasing as a result of COVID-related business shutdowns and lockdowns.
More Initiatives to support businesses, key among them: