Finance Minister Bill Morneau must announce billions of dollars in federal assistance to help cushion the financial shock of the COVID-19 outbreak for Canadians.
The announcement must be made in the morning on Wednesday. The measures are expected to amount to $ 20 billion or more.
It is expected to include measures to provide direct payments to Canadians so that they can afford to follow the advice of health professionals to stay at home as much as possible to prevent the spread of the disease. infection – perhaps through a temporary increase in the Canada Child Benefit and grants to workers who are not eligible for employment insurance.
The assistance will add to the billion dollars the federal government has already committed to providing for provincial health systems, research, protective equipment, softening of employment insurance rules and economic stabilization.
And that’s in addition to the $ 10 billion in credit support that has been made available to businesses.
Deputy Prime Minister Chrystia Freeland said the government is looking to emulate what countries like Singapore have done.
Singapore has spent around 1% of the value of its economy on measures such as top-ups to help companies keep workers, business tax credits, cash to innovate once consumer spending hits rebounded and targeted aid for particularly affected sectors such as tourism and air transport.
In Canada, 1% of gross domestic product would represent approximately $ 20 billion. However, some prime ministers have warned that at least twice that amount will ultimately be needed.