It’s a shocking number, but the federal government says this year’s projected deficit is in line with the fiscal response to the pandemic deployed by other comparable countries. The projected deficit at the end of this fiscal year is $343.2-billion. Last December the deficit was projected at $28.1-billion.

Finance Minister Bill Morneau says as businesses and many sectors of the economy closed or curtailed their activities because of COVID-19, 5.5-million Canadians, which is 30 per cent of the workforce, wither lost their jobs or saw their hours significantly scaled back over March and April.

A news release from the government says the toll of COVID-19 is expected to be the largest and most sudden economic contraction since the Great Depression, but measures to flatten the curve of the pandemic are paying off, which is leading to a gradual reopening of the Canadian economy. Morneau says with comparatively low levels of debt previously, the Government of Canada has room to borrow and support the Canadian economy. In fact, public debt charges are expected to fall this year, as a result of historically low borrowing rates.

Prime Minister Justin Trudeau doubled down on the COVID-19 response spending, saying if his government hadn’t taken on significant debt, Canadians would have. Trudeau says had his government not created support programs, Canadians would have maxed out credit cards, struggled to pay bills and figure out how to provide care to their loved ones.

Trudeau says by supporting the people and businesses with various pandemic-focused programs, the chances of the economy getting back on its feet are maximized. He disagrees with those who say the government should have done less.