As the world suffers from the global pandemic outbreak and economic slowdown, there is one country that stands out from the crowd. Canada was quick to put the best foot forward to help and support its citizens during this adversity. Entire world is applauding the efforts made by the Prime Minister Justin Trudeau by rolling out financial assistance to the people and businesses.
PM recently announced a major hike in the wage subsidy by 75% extended to the small and medium-sized businesses to help them keep their employees on their payroll. This gesture would save thousands of jobs within the country. Further to that:
- plans to launch an emergency business account wherein CAD 40,000 will be guaranteed to the small businesses
- Additional CAD 12.5 billion is guaranteed by the Govt. to maintain the operational cash flow requirements
- HST and GST payments are delayed till June, buying more time for the businesses to make their payments.
All these measures are taken empower the Canadian employers to retain their staff during this economic slowdown amidst global pandemic.
How these measures impacted?
- The hike in subsidy will come as a relief to keep the employee on payrolls and avoid the series of layoff. The measure will keep the economy balanced and save the small businesses from suffering loss
- As per the study, hundreds of thousands of jobs will be saved under this initiative.
- This will also reduce the financial and mental stress on the employees and ensure the speedy recovery of the economic slowdown.
- The measure will also help the local restaurants, salons, coffee shops and barber shops who are facing heavy loss right now.
What are the other measures by the Govt.?
- As the entire Canada is working from home by self-isolating and maintain social distancing, PM Trudeau ensured additional help for the vulnerable populations.
- is planning roll out financial packages and policies to help the youth, marginalized populations, people below poverty line.
- A package of CAD 107 billion has passed through Parliament as a measure of financial assistance
- While the government online portals of Official Canada Govt. services is closed, Govt. is seeking alternative solution to assist the people.
- Considering the slowdown, Bank of Canada has announced an unexpected interest rate cut, cutting down the key interest by half a percentage to 0.25 %.