Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Minister of Finance Chrystia Freeland delivers the 2020 fiscal update in the House of Commons on Parliament Hill in Ottawa on November 30, 2020.

Sean Kilpatrick/The Canadian Press

Finance Minister Chrystia Freeland said returning Canada to prepandemic levels of employment is a key target as the government works out the details of a recovery plan worth up to $100-billion over three years.

Ms. Freeland appeared Tuesday before the House of Commons finance committee, a week after delivering her first fiscal and economic update as Finance Minister.

The minister pointed out that while 80 per cent of the jobs lost during the pandemic have since been recovered, there are still more than 600,000 jobs that have not yet returned.

Story continues below advertisement

“The government will continue to work for [Canadians], to ensure that each Canadian who had a job before the pandemic will have one after. And that’s why we have a growth plan of between $70-billion and $100-billion,” she said. “We are committed to doing our job until Canadians have their jobs back.”

Last week’s update revealed that the federal deficit projection for this year has climbed to $381.6-billion, up from the $343.2-billion forecast in early July. The update also said the deficit could be nearly $400-billion if the pandemic worsens.

The update budgeted up to $100-billion over three years for future stimulus measures to boost the economy once the COVID-19 crisis eases.

The minister has not released a fiscal anchor, which is a term that describes a target for managing the deficit and debt. The update promised that such targets would be announced later and said fiscal “guardrails” would be used in the interim.

“It’s important for us to appreciate that we are working in an environment with a great deal of uncertainty. And that’s why, when we announced our intention to put in place a growth plan, we were very clear that we would be guided by fiscal guardrails, and those would be employment, unemployment and hours worked,” Ms. Freeland said.

On Tuesday, Fitch Ratings released a statement warning that Canada’s fiscal approach “could renew rating pressure.”

Fitch has been a negative outlier among rating agencies. It downgraded Canada’s triple-A credit rating to double-A-plus in June. Since then, other major rating agencies have confirmed their triple-A ratings for Canada.

Story continues below advertisement

Even though Fitch highlighted Canada’s rising debt levels Tuesday, it also said the emergency spending has supported the economy.

“Canada’s extraordinary fiscal and monetary policy supports have effectively buttressed the national economy through pandemic restrictions and should help bolster the recovery further in 2021,” Fitch said. “Strong residential investment and export recovery trends also support our expectation for a less severe recession in 2020.”

During Tuesday’s committee meeting, Conservative and NDP MPs criticized the government for not providing more detail about how the government has spent hundreds of billions of dollars during the pandemic.

Know what is happening in the halls of power with the day’s top political headlines and commentary as selected by Globe editors (subscribers only). Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies