OTTAWA • Canada has entered a second wave of the coronavirus pandemic, Prime Minister Justin Trudeau has said, warning that the country was on the brink of a surge that could be worse than what happened in spring if people did not follow public health guidelines.
In a national address on Wednesday, Mr Trudeau said Canada "is at a crossroads" as a second wave emerges in four large provinces, adding that the government would do whatever it takes to help the country recover from the crisis.
Canada's Covid-19 cases have spiked in recent days, with an average of 1,123 new cases reported daily over the past week, compared with a daily average of 380 cases in the middle of last month.
"We have the power to get this second wave under control. I know we can do it, because we've already done it once before," said Mr Trudeau.
Canada's total number of infections reached 147,753, while 9,243 people have died, according to latest government data.
Globally, 982,698 people have died of Covid-19 as at yesterday, according to Worldometers.
Canadians are now more worried about Covid-19 than they have been since April, an Abacus Data poll showed.
The government has also made commitments in the so-called Speech from the Throne, which lays out its agenda for the next parliamentary session, and promised to recover more than a million jobs lost during the crisis.
Since the coronavirus arrived in Canada earlier this year, the government has been grappling with high unemployment, a soaring budget shortfall and an uncertain future for many of Canada's businesses, particularly in the economically important oil and gas sector.
With the rise of Covid-19 cases in recent weeks, some provinces have revived restrictions, leading to concerns of even more economic woes.
"This is not the time for austerity," the government said in the speech.
The range of promises and mentions of significant investments could upset markets showing signs of nervousness about soaring budget deficits and debt. Canada lost one of its coveted triple-A ratings in June when Fitch downgraded it for the first time, citing the spending.
In his address, Mr Trudeau said low interest rates meant the government could afford the promised spending. "Doing less would mean a slower recovery and bigger deficits in the long run," he said, adding that long-term spending would be fiscally sustainable.
Canada's budget deficit this fiscal year is forecast to hit C$343.2 billion (S$352.8 billion), based on spending measures already announced. This would be the largest budget deficit since World War II.
Associate professor of management Ian Lee from Ottawa's Carleton University said the speech represented a "very high-risk bet" by Mr Trudeau. "He's gambling this massive increase in expenditures is going to generate very substantial growth," said Prof Lee.
The speech is a parliamentary measure of confidence, and, given that the Liberals have only a minority in the House of Commons, they will need the support of opposition legislators to avoid being toppled and plunging the country into an election.
The left-leaning New Democrats - who had indicated they might vote in favour - said the proposals did not offer enough support to Canadians.
Party leader Jagmeet Singh said he did not want to force an election, adding that his team would take "a lot of time" to decide what to do. A formal vote is likely next month.
The Conservatives, the largest opposition group, confirmed expectations that they would not back the government.
The Trudeau government said it is also sticking to the goal of fighting climate change and promised money to retrofit buildings and make zero-emissions vehicles more widely available.
The Liberals also vowed to make significant investments in childcare and said they would extend an existing wage subsidy measure until next summer.
The speech made no specific spending commitments or fiscal projections, some of which will be disclosed in a fiscal update later this year.
REUTERS, NYTIMES
