The staggering deficit comes as new numbers shows the Canadian economy shrinking by a record\u002Dhigh 38 per cent in the same period
Even as spending increased sharply over the quarter, the cost of public debt decreased nearly 30 per cent, from $6.9 billion to $4.9 billion. The lower debt charges are a result of record-low interest rates, which were slashed by central banks around the world at the onset of the pandemic.
The Canada Emergency Response Benefit , accounted for the single-largest expenditure over the quarter, at $41.6 billion. The next largest was the Canada Emergency Wage Subsidy at $22 billion and a small business loan program that cost nearly $7 billion over the quarter.Revenues also plummeted by 37 per cent, down by $32 billion to $52 billion over the quarter.
The Trudeau government seems poised to continue its spending binge, after the prime minister suggested his government would return to Parliament in September with “ambitious” spending plans that are expected to significantly expand the social safety net.
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