While the country is grappling with the second wave of COVID-19, the finance minister Chrystia Freeland suggested that the government will “ensure that post pandemic economy is robust, inclusive, and sustainable.” Running over a deficit of more than $380 billion in response to the fight against COVID-19, the government has proposed to inject $100 billion to spur the post pandemic recovery plan for the economy in a span of over three years. Here are some of the highlights from the update:
- For businesses, the government has proposed to bring back the wage subsidy to 75 per cent of company payroll costs and extend the business rent subsidy to mid-March 2021
- The government will provide financial assistance to anyprovince facing a year-over-year decline in non-resource revenues greater than five per cent under the Fiscal Stabilization Program. For the record, the maximum a province could receive was $60 per person
- The federal government will remove GST/HST from face masks and shields starting next year
- It has been proposed to fund $1 billion in long term care facilities to improve COVID-19 infection. Long-term care homes have been worst hit during the pandemic
- Middle and low-income families will get up to $1200 for each child under the age of six in 2021
- With the Home Energy Retrofit program, the government will provide grant of up to $5000 for improving the energy efficiency in Canadian homes
- It was also announced that the government will start to levy digital sales tax on digital giants such as Netflix, Amazon Video, etc.
The government is hopeful that the new round of economic support will effectively respond to the ongoing scenario. While the deficit is growing larger with each passing phase, this is the best bet the government can have right now.