Canada's Business Wage Subsidy In Response To COVID-19 To Cost $50Bln - Finance Minister

TORONTO (UrduPoint News / Sputnik - 02nd April, 2020) Canada's business wage subsidy announced last week by Prime Minister Justin Trudeau in response to the novel coronavirus (COVID-19) pandemic will cost $50 billion, Finance Minister Bill Morneau said during a briefing on Wednesday.

Under the new provisions, businesses that have seen revenues drop by 30 percent can apply to receive 75 percent wage subsidies - up from the originally announced 10 percent - for three months, retroactive to March 15, to keep employees on payroll while much of the economy is shut down as a result of the pandemic.

"We estimate that this measure to protect Canadian jobs will cost C$71 billion Dollars [US$50 billion]," Morneau said.

The measure is expected to cut the cost of the Canada Emergency Response Benefit (CERB) program - the $1,400 benefit for workers who have had their income streams affected by the COVID-19 pandemic - by $0.7 billion to $17 billion.

The program will build on the economic support package approved last week by the Canadian parliament at an emergency session after it had adjourned on March 13 amid the worsening pandemic.