The Canadian economic recovery from the coronavirus pandemic will likely not begin until “deep into 2021” but how the government plans to gauge when it is time to turn on — and off — the taps with a “major” recovery program remains hazy.Deputy Prime Minister and Finance Minister Chrystia Freeland on Monday unveiled the hotly anticipated fall economic statement, which pegged the current deficit projections at $382 billion this fiscal year and confirmed the government plans to issue a formal budget next year.
The combination of extensive spending on social programs, an economy stifled by pandemic restrictions and plans for roughly $100 billion in recovery stimulus over the next three fiscal years means the federal deficit likely won’t return.