The total value of government debt in 2022 in Canada exceeded the entire size of the economy by more than 10 per cent.
The effects of a recession could set off a debt “doom loop” with the debt ratio spiralling upward.
According to forecasts, federal spending will be $89.2 billion higher than previously projected for 2022/23 and $80.7 billion higher in 2023/24.
Residents in all provinces already pay more than $550 per person annually on government debt interest.
The projected federal deficit for 2022/23 could have been reduced by more than 42 per cent had the government stuck to last spring's spending plan.
A lack of fiscal prudence left Canada vulnerable when the pandemic hit.
Cutting regulatory red tape and removing internal trade barriers could help boost improve economic performance.
Federal net debt will reach a projected $1.3 trillion in 2021/22.