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2 Apr 2020
Canada: Overwhelmingly focused on income support for workers – RBC
Ottawa pledges $71 billion to pay 75% of wages up to $847 per week for workers in hard-hit industries. Canadian Minister Morneau confirmed details of the proposed subsidy, Colin Guldimann from the Royal Bank of Canada reports.
Key quotes
“The Government pledged $71 billion (3.1% of GDP) to help businesses of all sizes who suffer revenue drops of 30% or more relative to this time last year. The subsidy will cover 75% of a worker’s pre-COVID earnings for up to 12 weeks, up to a maximum of about $10,000 per worker.”
“These measures bring the federal government’s direct support for the economy to about $105 billion (4.6% of GDP), overwhelmingly focused on income support for workers (totaling $95 billion).”
“Our overall view of the deficit for the 2020/2021 fiscal year now tracks at a whopping $170 billion (7.4% of GDP).”