For Your Information

Government Spending on COVID-19 Relief

As of May 13, 2020, the federal and provincial and territorial governments have committed over $820 billion to COVID-19 relief, which includes direct transfers to workers, students, employers, regional agencies, charities, food banks and other organizations, as well as credit in various forms. The purpose of these programs is, according to Prime Minister Trudeau and other Cabinet Ministers, to provide immediate help to workers and businesses affected by the economic shutdown, so that workers can pay rent and put food on the table, and so that businesses are positioned to swing into action when the economy "comes roaring back."

The following table is based on announcements from the Department of Finance and the Prime Minister. The Department of Finance has broken these into four categories: Protecting Health and Safety, Direct Support Measures, Liquidity Support to Businesses and Individuals, and Business Credit Availability Program. Undated items were announced prior to April 11.

Protecting Health and Safety                 
COVID-19 Response Fund $1.1 billion
Funding for PPE $2.0 billion
Direct Support Measures
Canada Emergency Response Benefit (will increase due to expansion of eligibility criteria) $24.0 billion+
Enhanced GST credit $5.5 billion
Enhanced Canada Child Benefit $1.9 billion
Temporary Business Wage Subsidy $975 million
Canada Emergency Wage Subsidy $73.0 billion
Canada Student Loan Payments $190 million
Support for Indigenous Communities $305 million
Support for the Homeless (through the existing Reaching Home program) $157.5 million
Support for Women’s Shelters and Sexual Assault Centres $50 million
Support for Seniors, Children and Youth $16.5 million
Support for food banks and local food organizations $100 million
Lower RRIF minimum withdrawal $495 million
Support for air transportation sector $331.4 million
For employers to support quarantine measures for temporary foreign workers (April 13) $50 million
For northern communities (April 14) $130 million
For the Canadian Food Inspection Agency (April 14) $20 million
To clean up oil wells in Alberta, BC, Saskatchewan (April 17) $1.7 billion
Emission reduction fund (April 17) $750 million
For Indigenous businesses (April 18) $306 million+
Emergency Fund for Community Support (April 21) (community organizations and non-profit organizations) $350 million
Support for post-secondary students (April 22) $9.0 billion
National medical/research strategy (April 23) $1.1 billion
Support for Fish and Seafood processors (April 24) $62.5 million
Canada Emergency Commercial Rent Assistance (April 24) $2.0 billion
For Food Processors (May 5) $252 million
For top-up of wages for essential workers (May 7) (administered by provinces who will contribute $1 billion) $3.0 billion
New measures to support seniors (May 12) $2.5 billion
New Horizons for Seniors Program expansion $20 million
Liquidity Support to Businesses and Individuals
Income tax payment deferral to September $55 billion
Sales tax remittance and Customs Duty payment deferral $30 billion
Regional Relief and Recovery Fund (RRRF) (May 13) $962 million
Business Credit Availability Program (through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC))
Small and medium-sized Enterprise Loan and guarantee program $40 billion
Canada Emergency Business Account $25 billion
Credit and liquidity support for the Agricultural Sector $5.2 billion
Credit and liquidity support (through the Bank of Canada, OSFI, CMHC and commercial lenders) $500 billion+

Altogether, these federal programs total over $787.522 billion. Many of these announcements have been accompanied by statements that these are initial amounts (e.g., seafood and agriculture), that there will be more funding to come, or that changes could be expected to time lines and eligibility criteria, etc., which will increase the amounts. On May 11, the Prime Minister announced that a Large Employer Emergency Financing Facility (LEEFF) will be established "to provide bridge financing to Canada's largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going." No amount for this program was provided. The BCAP is to be expanded "to mid-sized companies with larger financing needs." There have also been promises of more support to come for specific sectors, including tourism and energy.

In addition to funds announced by the federal government, provincial and territorial governments have implemented various programs. Programs for which a cost has been identified total over $28 billion. But there are many more for which no dollar figure has been given, including delays in income tax filing deadlines, forgiveness of student loans, direct subsidies to day cares and community organizations, such as food banks, wage subsidies for workers ineligible for federal programs or to add to federal programs, credit for small businesses, rental assistance and financial assistance for people on social assistance.

(Department of Finance, Press statements of Ministers, McCarthy Tétrault "COVID-19: Economic relief measures announced to date.")

This article was published in

Volume 50 Number 17 - May 16, 2020

Article Link:
For Your Information: Government Spending on COVID-19 Relief


    

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