The federal government of Canada is trying to ensure that there are enough funds available to support people during this pandemic. People who are suffering from illness or loneliness need additional support at this time. Moreover, a large number of people are losing their jobs because of the hit to the economy, which can lead to countrywide loss of income.
The country is organizing measures that can help to stabilize the economy so as to protect more jobs. These steps are aimed to contain the negative repercussions of COVID-19. The government released details of the COVID-19 Economic Response Plan on 18th March. Canada is all set to allocate up to $82 billion, which stands for over three percent of the GDP, to the plan. This can help many Canadians to pay rent and get necessary groceries. Moreover, the plan is also meant to businesses that are struggling to pay their employees and bills because of the pandemic.
According to estimates, about $27 billion of the complete funds will be distributed to workers and businesses in Canada. The government is prepared to give up to $55 billion in the form of tax deferrals. This will help businesses and households to make their payments on a later date. A government media release released all the details about the planned measures.
The $1 billion COVID-19 Response Fund in Canada is meant to provide support to the health care systems of the different provinces and territories. Over $500 billion is available in the form of credit and liquidity to help people and businesses maintain some degree of normalcy.
The six biggest financial institutions of the country have joined forces with smaller personal banking customers in order to come up with flexible solutions for the different financial challenges that are cropping up due to COVID-19.