Feds commit to limited new COVID-19 spending, predict declining deficit

The federal government is committing to spend an additional $8.1 billion to help finish the fight against COVID-19 while at the same time, predicting a moderate decline in the national deficit.

Deputy Prime Minister and Finance Minister Chrystia Freeland provided a snapshot of the country’s finances on Tuesday while unveiling the fall economic and fiscal update.

The more substantial line items in the batch of pandemic supports that flow into 2027 include allocating $2 billion over two years, starting in 2021-22, to the Public Health Agency of Canada (PHAC) to procure COVID-19 therapeutics.

The government is also proposing to provide $1.7 billion to Health Canada and PHAC to help provinces and territories secure rapid tests and the supplies needed to administer them.

Responding to calls from opposition politicians, $742.4 million will also be funneled through one-time payments to low-income seniors across Canada who saw their Guaranteed Income Supplement clawed back by accepting the Canada Emergency Response Benefit or the Canada Recovery Benefit.