COVID-19 : a record deficit of more than$ 250b in Ottawa

COVID-19 : un déficit record de plus de 250 G$ à Ottawa

OTTAWA | The federal government will register a record deficit of at least 250 G$ the next year because of the pandemic of sars coronavirus, provides for the parliamentary budget officer (DPB).

“As a proportion of the economy, the budget deficit in 2020-2021 would be the largest deficit ever recorded,” wrote the watchdog of public finances in a report published this morning.

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The latter calculates that the budget deficit would increase from$ 25 billion in 2019-2020, to reach 252 G$ 2020-2021.

Financial assistance to businesses and workers, combined with a significant decline in revenues, explains the scope of the expected deficit.

Ottawa has announced that so far $ 146 billion $ in aid to people affected by the crisis of the COVID-19, according to the DPB

The deficit could widen further, according to the parliamentary budget officer, “while other financial measures may be needed to support the economy in the coming months”.

 

The PCU will cost 35.5 billion $

Émilie Bergeron

OTTAWA-The parliamentary budget officer considers that the Provision of canadian emergency (PCU) will cost 35.5 billion $. The Trudeau government had not costed this measure, after having expanded access.

Initially, the federal government estimated that the PCU would cost $ 24 billion to the public Treasury. This service allows Canadians who can’t work due to the coronavirus to touch $ 2000 per month during a maximum of four months.

However, there are approximately two weeks, Ottawa has loosened its eligibility criteria to allow people whose income is only $ 1,000 per month or less also avail themselves of the PCU.

Seasonal workers are also entitled to this federal assistance, and the unemployed who have recently exhausted their employment insurance benefits.

In an analysis made public Thursday, the office of the parliamentary budget officer (DPB) establishes the new cost of the PCU to 35.5 billion $.

“The number of weeks of payments from the PCU for each eligible applicant would depend on the reason for which the person is unable to earn an income, and the severity of the disease, if any,” stressed however the authors.

According to data published online by Ottawa, 7,26 million Canadians have requested the PCU to date.

The DPB has taken into account in its estimates, the fact that some providers will eventually be covered by the wage subsidy emergency (SSUC) of 75 %.

This other measure, which is expected to cost $ 73 billion $, aims to help businesses severely affected by the pandemic to pay their employees by subsidising up to 847 $ per worker per week.

This program is also intended to encourage employers to rehire employees laid off in the wake of the crisis of the COVID-19.

“After taking into account the interaction between the PCU and the SSUC, the DPB considers that there will be 8.5 million sole beneficiaries of the PCU and the total cost of the program will amount to 35.5 billion for the year 2020-2021”, do we write in the analysis published on Thursday.

Entries for the wage subsidy started on Monday and the first payments should be made on 7 may.

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