In an effort to help Canadians and businesses cope with the global COVID-19 pandemic, Prime Minister Justin Trudeau recently announced the implementation of a $82-billion aid package.
The package includes $27 billion in direct support for Canadians, including income support and wage subsidies. Another $55 billion was also included in order to help business liquidity through tax deferrals.
The entire package represents more than three percent of Canada’s GDP.
Despite fears of recession, Trudeau insists that prudent decisions made over the last five years have put Canada on a strong economic footing to weather the crisis.
The support from the package aims to help Canadians pay for rent and groceries, to aid businesses in continuing to meet payroll and pay bills, and to stabilize Canada’s economy.
The emergency aid plan includes:
- About $2 billion in extra support to Canada Child Benefit payments, offering a temporary boost.
- A new Emergency Care Benefit of up to $900 biweekly, up to 15 weeks, in order to provide income support to workers who have to stay home and don’t qualify for paid sick leave or employment insurance. Is also extended to the self-employed. The measure could disburse up to $10 billion.
- A new Emergency Support Benefit to provide up to $5 billion in support to workers facing unemployment who do not qualify for employment insurance.
- An interest-free reprieve on student loan payments for six months.
- Doubling the homeless care program.
- An extension on the tax filing deadline to June 1.
- Allowing taxpayers to defer until after Aug. 31 tax payments that are due after today and before September.
- $305 million for a new Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.
Other measures include a GST credit for low-income Canadians and special support for the homeless and shelters helping people escaping gender-based violence.
