Friday, September 12, 2025

Latest

Canadian Federal Government to Release Economic Update this Summer; Deficit Likely Exceeds $260 Billion

The coronavirus pandemic has caused the Canadian federal government to impose stay-at-home orders, strict social distancing guidelines, and non-essential business shut-downs. However, as a means of mitigating the severe financial hardships that some Canadians and businesses have had to endure as result, the federal government has also been generous with its monetary and fiscal policies. Now that the peak of the coronavirus is beginning to subside, Canadian opposition parties are calling on the release of an economic update so as to put into context federal spending thus far.

Since the onset of the coronavirus pandemic in March, the federal government has unveiled unprecedented spending measures as a means of mitigating the resulting economic damage. Thus far, the government has pledged in excess of $150 billion in COVID-19 related financial aid. But as that spending continues to mount, including CERB benefits that have gone at least $8 million over budget, the opposition wants some form of accountability.

Prior to the pandemic, Finance Minister Bill Morneau had anticipated to deliver the 2020 budget at the end of March. Simultaneously however, the World Health Organization declared the coronavirus a global pandemic, so Parliament was immediately suspended and resources were diverted elsewhere. Although there exists a significant difficulty in making accurate projections in terms of forthcoming spending during the pandemic, Conservative Party leader Andrew Scheer is calling on the Department of Finance to at least provide Canadians with a transparent economic update.

As a result, the Liberal government has agreed to plan for a release of an economic update. Although the exact date of the release is unknown, finance department officials are anticipating to have it ready sometime in the summer.

Yves Giroux, who is the Parliamentary Budget Officer, recently provided an estimate regarding the federal deficit. Thus far, the deficit is as high as $260 billion, and could very well continue increasing to $1 trillion in fiscal 2020. Given that there is not an infinite amount of money to spend, future taxpayers will most likely be on hook for this year’s stimulus spending for a long time.

Information for this briefing was found via Bloomberg, Maclean’s, and CTV News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Canadian Retail Sales Increase 0.4% In October

Canadian retail sales recorded strong growth for the month of October, rising by 0.4% on...

Friday, December 18, 2020, 02:34:00 PM

Trudeau Plans to Ease Pressure on Immigration … By Increasing Immigration

Prime Minister Justin Trudeau is planning to increase immigration in Canada to ease the pressure...

Thursday, February 23, 2023, 07:33:00 AM

Canada’s Economy Could Lose Up To 500,000 Jobs As A Result Of Travel Restrictions

Since the onset of the pandemic, Canada has kept is borders shut to international tourists...

Saturday, October 24, 2020, 11:41:00 AM

RCMP Is Looking For Informants, Possible Victims Related To Chinese ‘Police Service Stations’ In Toronto

The Royal Canadian Mounted Police (RCMP) announced on Tuesday that they are investigating Chinese ‘police...

Wednesday, November 23, 2022, 11:47:00 AM

Strong Housing Market Recovery Causes Consumer Debt to Rise in Q2

As the coronavirus pandemic continues to put financial pressure on Canadians, the latest data released...

Saturday, September 5, 2020, 03:37:00 PM