How much of a COVID-19 bailout can the federal government afford?
Preliminary estimates based on federal bailout announcements to April 22
- APEC estimates the federal government still has plenty of fiscal capacity to continue its COVID-19 bailout. This is because Canada’s federal debt-to-GDP ratios are low relative to other advanced economies and the extra tax revenues to service the higher debt are currently relatively modest.
- Existing measures are necessary to help individuals, businesses and other organizations bridge the gap until they can start working and producing again.
- The full scope and duration of the required bailout and stimulus for the recovery is still unknown.
- It is important to understand that all Canadians will be paying for these deficit-financed bailouts in higher tax rates (or reduced spending) for years to come.
Read APEC's full analysis here.