There is no magic button but more spending is not the solution
Justin Trudeau has added more debt than all other Prime Ministers combined and has no plan to balance the budget and control his inflationary deficits that are driving up the cost of the goods we buy and the interest we pay.
Canada’s federal debt for the 2023-24 fiscal year is projected to reach $1.22 trillion. That is nearly $81,000 per household in Canada.
There is no path to balance in Canada’s budget projections. The deficit for 2022-2023 is up to $43 billion. In 2023-2024 the deficit is projected to be $40.1 billion.
The Fall Economic Statement projected a $4.5 billion surplus in 2027-2028. Budget 2023 now projects nothing but a deficit. Budget 2023 projects a $14 billion deficit in 2027-2028, which is as far as the projections go.
According to Budget 2023, Canada’s debt-to-GDP ratio is projected to increase from 42.4 percent in 2022-2023 to 43.5 percent in 2023-2024.
In Budget 2022, Minister Freeland said that Canada’s debt-to-GDP ratio was her fiscal anchor, and debt-to-GDP must decline for Canada’s finance to be sustainable:
“let me be very clear: We are absolutely determined that our debt-to-GDP ratio must continue to decline. Our deficits must continue to be reduced. The pandemic debt we incurred to keep Canadians safe and solvent must—and will—be paid down.
This is our fiscal anchor. This is a line we shall not cross. It will ensure that our finances remain sustainable.”
Chrystia Freeland, Minister of Finance
According to our own Finance Minister, Justin Trudeau’s inflationary debt and deficits are unsustainable.
The cost of servicing Canada’s enormous debt continues to grow. The cost to service Canada’s debt this year (2023-2024) is projected to be $43.9 billion. This is nearly double the costs in 2021-2022, when debt servicing costs were $24.5 billion. Justin Trudeau’s inflationary spending has driven up interest rates, which has driven up the cost of Canada’s debt servicing.
Despite the pandemic being over, government spending is still up over $120 billion compared to pre-pandemic spending levels. In 2019 Canada’s program spending was $323 billion. For 2023-2024 spending is projected to be $447 billion.
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