The world is going through economic fallout. At this stage, it is crucial that the government of every country take steps to ensure the well-being of its people.
Canada is one such country that has taken much-needed measures to support people and businesses by releasing a COVID-19 Economic Response Plan.
As per the details of the Economic Response Plan, Canada has made its stand to allocate nearly $82 billion, which is more than 3 percent to its total GDP, to assist Canadians in paying their bills of rent, groceries, and to help businesses pay their employees.
The government has announced to provide $2 billion for Canada Child Benefit in order to help families with children.
If homeowners are facing financial issues due to the pandemic, they will be allowed to do mortgage payments deferral.
The federal government will also support workers who do not come under the ambit of receiving paid leave. $900 will be provided to them bi-weekly for a duration of 15 weeks. This economic measure will be applied to quarantined workers and self-employed people who are not included in the Employment Insurance (EI) program. Individuals who are taking care of ill family members like elderly members and children are also covered by this measure.
The Canadian government has increased goods and services tax credit to support low and moderate-income groups.
Furthermore, it has announced a new community fund support by providing $305 million that will help in meeting the needs of Inuit, Metis and First Nations communities.
In order to help seniors, Canada has relaxed the rules for Registered Retirement Income Funds. Now, the minimum withdrawals are reduced by 25 percent.
Students who need to pay back the loan will be allowed to get a break from paying the loan for a six-month period and that too, without any added interest. This comes as a big relief for students stuck amid coronavirus outbreak.
Canada will allocate $50 million to women’s shelters and sexual assault centers to help them meet their daily needs and manage the coronavirus crisis.
Additionally, $157.5 million will be given to the Reach Home Program to help homeless people.
With a fund of over $10 billion, a Business Credit Availability Program will be established for businesses. Through this program, small, medium and large businesses will be able to access more credit. Also, small businesses will get wage subsidies.
Additionally, farmers and individuals belonging to the agri-food sector will be allowed to get more credit through Farm Credit Canada.
Further, Canada will give more time to businesses to pay their income tax without any interest and penalty.
The government will start an Insured Mortgage Purchase Program to provide funding to banks and mortgage lenders. Under this program, Canada will buy nearly $50 billion of insured mortgage pools. In this way, the government will support financial market liquidity. And, this will help add liquidity to the mortgage market of Canada.
As the finance minister of Canada says that in these extraordinary times, extraordinary measures must be taken. Hence, the government of Canada is taking every necessary action to protect the economy, health, and safety of all the people living in Canada during the global coronavirus crisis.