Parliamentary Budget Officer Yves Giroux says it's 'not unthinkable' that the federal debt could reach $1 trillion during this fiscal year as the economic response to the COVID-19 pandemic continues.
OTTAWA -- Parliamentary Budget Officer Yves Giroux says it's "not unthinkable" that the federal debt could reach $1 trillion during this fiscal year as the economic response to the COVID-19 pandemic continues.
He said the measures the government has been announcing are intended to be temporary, and that once programs such as the Canada Emergency Response Benefit and the wage subsidy expire and the economy recovers, Canada's debt-to-GDP ratio should "stabilize." "There will be time after this is all done as we figure out how exactly this unfolds, where we will have to make next decisions on how that recovery looks," Trudeau said during a news conference on April 30, the day the initial $252-billion figure was released from the PBO's office.However, Giroux said there is something the government can do now to help with forecasting economic damage and understanding the steps that will need to be taken in the path to economic recovery.
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