The coronavirus' impact will be remembered for decades, partly because of how quickly it flipped the world's economy on its head.
Canada is no exception. The deficit has increased ten-fold from the same time last year, after Justin Trudeau's countless waves of government intervention to help students, the unemployed, businesses, and renters.
The total of Ottawa's emergency assistance programs tallies up to a whopping $146 billion, according to the Department of Finance.
"Based on our updated economic scenario and including announced federal measures, the budget deficit would increase to $24.9 billion in 2019?20 and then to $252.1 billion in 2020-21," the release reads.
"As a share of the economy, the budget deficit in 2020-21 would be the largest budgetary deficit on record (since the beginning of the series in 1966?67) and sit well above the record of 8.0 per cent of GDP observed in 1984?85."
The shocking figures show that with the increase in budget, and the sharp decline in GDP, the federal debt-to-GDP ratio will increase from 48% in 2020-2021, from 31% pre-pandemic.
Debt-to-GDP has not been so high since it reached 48.4% in 1999-2000.
Regarding how the economy will lift off following eased social and health restrictions, the statement says that proper stimulus may be needed to get the ball rolling.
"Despite the recently announced measures, additional fiscal measures may be required to support the economy in the coming months. Moreover, after support measures are provided, fiscal stimulus measures may be required to ensure that the economy reaches lift?off speed, especially if consumer and business behaviour does not quickly revert back to 'normal' conditions."
"Once the budgetary measures expire and the economy recovers, the federal debt-to-GDP ratio should stabilize and then start declining under pre-crisis fiscal policy settings. However, should some of the measures be extended or made permanent, the federal debt ratio could keep rising," the statement concludes.
The full statement can be read here.
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