Morneau facing pressure to unwind massive COVID-19 support programs ahead of fiscal update

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Morneau facing pressure to unwind massive COVID-19 support programs ahead of fiscal update
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Many observers hope Ottawa will explain its plans for the CERB and the CEWS, which were temporary measures to help businesses and workers as the economy was put into lockdown

Morneau will table a fiscal “snapshot” on Wednesday, providing the first glimpse of the government’s outlook for the economy since the pandemic struck in late February. The finance minister has not yet tabled his annual budget, citing economic uncertainty from COVID-19, but has since decided to put forward a more limited fiscal update.Article content continued

Hyder said Ottawa needs to transition toward a position of “coexisting with COVID,” in which Canada is able to manage successive outbreaks of the virus without fully shutting down the economy.Article content continued The Parliamentary Budget Officer has warned the Liberal government against allowing the two main programs to become permanent or semi-permanent, saying it could lead to “structural deficits” at a time when public revenues have plummeted. The PBO currently estimates the deficit to top $250 billion in 2021.Article content continued

That approach appears to run counter to the recommendations from the NDP, who have supported the extension of CERB in its current form.CERB benefit extended by eight weeks; Canada-U.S. border restrictions to last another 30 days

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