The federal deficit is projected to hit $343.2 billion this fiscal year, due in large part to massive economic aid and stimulus plans—that are on-par with Second World War level spending.
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In total, the federal government has spent more than $231 billion in health and safety measures as well as on direct aid to Canadians and businesses over the course of the pandemic so far. He also suggested a silver lining in regards to Canada’s increased debt-to-GDP ratio. With current public debt charges at around one per cent of GDP, the cost to service the now ballooning debt is actually $4 billion lower this year than expected, given the historically low borrowing rates.
Speaking to reporters in advance of the revised economic picture being made public, Prime Minister Justin Trudeau said that the situation would have been much worse had the federal government not brought in massive aid measures. It also details the cost of a range of non-COVID-19 policy actions taken by the federal government since the 2019 economic update, which in total for the 2020-21 fiscal year amounts to just over $9 billion.
The Canada Emergency Business Account, which offers businesses loans of up to $40,000. According to the new figures, 688,000 applicants have received these loans, totaling $27.4 billion.
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