Canada formulates corona recovery budget

Canada is expected to channel funds into childcare, wage subsidies and other pandemic recovery measures in new budget.

The 2021 budget is the first full fiscal plan from Prime Minister Justin Trudeau’s administration since the start of the Covid-19 pandemic and is expected to outline Canada’s recovery as virus infections surge.

Finance Minister Chrystia Freeland has promised Ottawa “will continue to do whatever it takes” to fight the spread of the coronavirus and support the economy as it emerges from a recession.

“We have a plan for jobs and robust growth,” she told parliament last month.

Canada entered the pandemic in a strong fiscal position relative to other G7 nations after decades of belt-tightening, she said, allowing it to dole out hundreds of billions of dollars in coronavirus emergency aid.

Critics have warned against piling on too much debt, after Ottawa’s budget deficit exploded over the past year to an estimated Can$382 billion (US$305 billion), according to an update issued in November.



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