Despite the huge deficit, the government is preparing to spend up to C $ 100 billion ($ 77.2 billion) to grow the economy.
Canada is facing a record low of C $ 381.6 billion ($ 294.4 billion) as a result of government measures to combat the economic and social impact of the Covid-19 epidemic.
This was stated in a Fall Economic Statement presented by the Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland before the House of Representatives.
Despite the high deficit, the government is preparing to spend up to C $ 100 billion ($ 77.2 billion) to grow the economy that was affected by the coronavirus crisis.
The deficit is expected to affect C $ 381.6 billion in March next year. It could grow, however, as the country is in the second phase of infection, which is causing new closures in some provinces.
An official statement issued by the country’s finance ministry said that once the virus was under control, the government would “invest in a growth program” of about 3-4% of GDP, between C $ 70-100 billion over a three-year period to “start” the country’s “recovery”. .
“Timely investment will build Canada into a cleaner, more inclusive, innovative, competitive economy,” the statement said.
The statement quoted Freeland as saying, “We will do whatever it takes to help Canadians. We will invest in all necessary public health services. We will support Canadians and Canadian businesses in a targeted and effective manner. We will also ensure that the Canadian economy emerges from this green, inclusive, innovative, and highly competitive one, with a strong, moderate, and resilient medium. ”
According to statistics, the deficit will not return to pre-Covid-19 levels by 2026. It also surpassed the record deficit recorded during the 2008-2009 global financial crisis.
The number of Covid-19 confirmed cases in Canada increased by 6,103 to 377,806, with a death toll of 12,130.