Canada will keep up heavy but ‘limited’ coronavirus spending: Freeland

Canada will continue spending heavily to combat a coronavirus pandemic but the government’s response is limited and temporary, Finance Minister Chrystia Freeland said on Wednesday.

Freeland made her remarks to a Toronto economic forum after analysts and opposition politicians questioned the fiscal consequences of spending more than $200 billion in aid programs and racking up the biggest budget deficit in 75 years.

READ MORE: Freeland says she’s confident coronavirus defeat ‘is not years away’

“There are no blank cheques, and there are no free lunches,” Freeland said in prepared remarks.

“Our fiscally expansive approach to fighting the coronavirus cannot and will not be infinite. It is limited and temporary,” she added, promising more details in a fall fiscal update that she said was due soon.

Click to play video 'Coronavirus: Freeland stresses Canada can afford COVID-19 assistance' 6:20 Coronavirus: Freeland stresses Canada can afford COVID-19 assistance

Coronavirus: Freeland stresses Canada can afford COVID-19 assistance

Prime Minister Justin Trudeau last month said Canada would spend what it took to support Canadians and businesses, noting that interest rates are at record lows.

“For countries that can afford to borrow and spend, now is not the time for half-measures … the risks of withdrawing support too soon outweigh the dangers of spending too much,” said Freeland.

Click to play video 'Coronavirus: Freeland says government wants to give Canadians ‘bridge’ to get through pandemic' 4:41 Coronavirus: Freeland says government wants to give Canadians ‘bridge’ to get through pandemic

Coronavirus: Freeland says government wants to give Canadians ‘bridge’ to get through pandemic

Advertisement

© 2020 Reuters

Article Source

Pinterest