Between 2024/25 and 2027/28, the federal government has increased projected spending by $30.7 billion more than previously forecasted.
Between 2024/25 and 2027/28, the federal government has increased projected spending by $30.7 billion more than previously forecasted.
Annual inflation peaked at 8.1 per cent in June 2022, well above the bank’s 2 per cent target.
Even after inflation is brought to heel, Canadians should not expect interest rates to return to pre-pandemic levels.
Rising interest rates will put additional pressure on federal finances.
By 2028, the federal government will add a projected $131.8 billion in debt.
Ottawa is spending nearly one-third more than it was in 2019 before the pandemic.
Government borrowing crowds out private investment and lowers the economy’s productive potential.