Fiscal Policy Country Blog
One significant fiscal policy implemented by Canada in recent years was a stimulus bill to combat the negative economic effects of COVID-19. Through this plan, the Canadian government has committed over $212 billion in direct support to Canadians and businesses(Canada, Department of Finance). Another fiscal policy was recently implemented with a similar objective. This policy included a commitment of $85 billion in tax differentials, $5.8 billion in support of health care, and $14 billion to support the safe reopening of the country’s economy. Finance Minister Chrystia Freeland is in favor of both these policies, stating in a prepared budget speech to lawmakers that “We must punch our way out of the COVID recession. That means ensuring lost jobs are recovered as swiftly as possible, and hard-hit businesses rebound quickly.” However, Robert Asselin, the senior vice president of the business council of Canada, is less optimistic about the plan. Asselin says he is unsure of how this polic...