Economic update: the pandemic continues to hole the pockets of the Federal government

Economic update: the pandemic continues to cut the pockets of the F & eacute ; d & eacute; ral

MISE & Agrave; DAY

The pandemic continues to cut through the pockets of the state. The federal government expects Omicron to cost it an additional $ 4.5 billion and to put an end to the return to balanced budgets. & nbsp;

In its economic update presented today, the finance ministry announces setting aside $ 4.5 billion. Of this, $ 500 million will go in particular to new border measures that must be discussed this evening at an emergency summit. & Nbsp;

The objective of this reserve of funds is to cover “the possible new costs associated with the fight against the Omicon variant and other increases in COVID-19 cases”, explained the Minister of Finance, Chrystia Freeland, she- even in isolation since two of his collaborators are carriers of COVID-19.

“I think that's really optimistic,” warns economist Robert Asselin, former director of policy and budget for the finance minister, now vice-chair of the Business Council of Canada. For him, Ottawa could have to extend much more money if new lockdowns were to be imposed.

Deficit

Overall, the ministry forecasts a deficit of $ 327.7 billion for 2020-2021. Next year, it is expected to rise to $ 144.5 billion, eventually reaching $ 13.1 billion in 2026-2027.

“We do not have a goal of returning to balanced budgets. It is not our way of thinking about the good management of our activities ”, declared a senior government official. COVID-19, $ 1.7 billion for rapid tests and $ 70 million for ventilation in public buildings.

There is also $ 742.4 million for beneficiaries SRG, PCU, PCRE, and $ 60 million to support workers in the entertainment industry.

There is also a historic sum of $ 39.9 billion over 6 years to compensate First Nations children.

To finance all this, the Minister underlines the importance of generating growth, which will inflate state revenues. She assures that she will detail how she intends to stimulate growth in the next budget, in the spring.

Although the economy is currently running at full steam with a growth rate (5.4% of our GDP) which exceeded that of the United States, Australia, Japan and the United Kingdom in the third quarter, the ministry predicts a relapse to the anemic level before pandemic as early as next year.

SEE ALSO … & nbsp;

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