Red Flags on Canada’s Rising Interest Costs
This evening in the House of Commons, Greg didn’t hold back as he questioned Finance Minister François-Philippe Champagne about Canada’s growing interest payments on the national debt.
McLean came prepared with numbers—and some tough questions. He pointed out that the government is now spending $49 billion just on interest this year. That’s $2 billion more than what was forecasted last year.
Here are a few key takeaways from McLean’s exchange:
- Interest payments have nearly doubled over the past 10 years—from $24.2 billion to $49 billion.
- The cost per household has jumped from $1,800 to $2,900.
- The Parliamentary Budget Officer expects interest costs to keep rising by about 10% a year.
McLean asked the minister whether the economy or tax revenues are expected to grow at the same pace. The minister responded with optimism about Canada’s AAA credit rating and low debt-to-GDP ratio, but McLean wasn’t convinced. He warned that we could be heading into a “debt spiral”, and questioned whether the government is trying to reframe the issue rather than fix it.
This exchange highlights a growing concern among Conservatives: that the government’s spending habits could leave future generations with a heavy financial burden.
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