The following is from Canadian Finance Minister Chrystia Freeland, courtesy of the RV Dealers Association of Canada.
Nov. 30, Minister of Finance Chrystia Freeland tabled the long-awaited Fall Economic Statement 2020 in the House of Commons, as COVID cases are rapidly increasing across the country and deep economic uncertainty persists.
The statement provides a detailed overview of Canada’s fiscal position and presents new details on COVID-related relief measures. The federal government also reaffirms its Throne Speech commitment to continue supporting the economy and the hardest-hit businesses through this crisis while laying the groundwork for the post-pandemic stimulus and long-term liberal priorities, such as pharmacare, national affordable child care and addressing climate change.
Fiscal Update
The deficit is estimated to reach a historic high of $382 billion for the fiscal year 2020-2021 before decreasing gradually to $121 billion in 2021-2022 and $51 billion in 2022-2023. The total debt will balloon to over $1.1 trillion in 2021, representing over 50 percent of the national Gross Domestic Product (GDP).
Government revenues, including personal income tax and corporate income tax, are expected to decrease significantly while expenses are rapidly increasing as a result of COVID-related business shutdowns and lockdowns.
More initiatives to support businesses, key among them:
