FREELAND: WITH DEFICIT APPROACHING $400B, OTTAWA DETAILS EVEN MORE SPENDING
Nov 30, 2020
By Bob Komsic
There’s new money for families, businesses and long-term care in the federal fall economic update.
Finance Minister Chrystia Freeland also defends the Trudeau Liberals record deficit of more than $381-billion as affordable and necessary, claiming spending too little would be a bigger mistake than spending too much.
The government’s also proposing $25-billion in new funding for businesses and workers.
It also wishes to bring the wage subsidy back to 75% of business payroll costs and extend the business rent subsidy to the middle of March.
Freeland points out the measures will be removed once the economy improves, however the timing’s tied to the path the pandemic takes.
According to the finance minister, the update is setting up work already underway toward a budget in the spring that’ll be focused on recovery.
Support for that Freeland adds will include a three-year stimulus plan worth up to $100-billion.
There’s also another $1-billion to help provinces with long-term care homes which have already lost so many of Canada’s most vulnerable.
The economic update also calls for a $420-million down payment on a planned national child-care system that the government promises to spell out in the spring budget.