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Governments betting on low interest rates may experience rude awakening
Governments in Canada and around the world have run large budget deficits and greatly added to their debt loads due to their pandemic response and the accompanying economic downturn. Moreover, they are poised to add even more debt in ...
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Federal finances ‘careening downhill’ fast
It has now been nearly a week since federal Finance Minister Chrystia Freeland released the fall economic statement (FES). After a suitable period of digestion, it’s still unclear where exactly federal finances are heading aside from very ...
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Canada’s fiscal situation near crisis levels
As the pandemic continues, Ottawa and the provinces have embarked on a fiscal cruise whose ultimate port of destination is not necessarily a safe harbour. With an estimated federal deficit of more than $343 billion for 2020-21 combined ...
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Freeland takes over during massive federal spending spree
It’s out with the old and in with the new in Ottawa as Chrystia Freeland replaces Bill Morneau as federal finance minister. Freeland takes over during a dramatic time in Canadian history, so it’s worth reviewing the history of federal ...
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Government policies hurting—not helping—on several fronts
Picture if you will the following scenario. There’s a forest fire underway. How to deal with it? One logical approach is to deploy firefighters and waterbombers to extinguish the fire. Another approach is to light a number of smaller and ...
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Ottawa has a big spending problem
As the dust settles from Monday’s federal economic and fiscal update, it becomes ever more apparent that Ottawa does not have a revenue problem but a massive spending problem. From budgetary revenues of $332.2 billion in 2018-19, the ...
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Ottawa’s net debt projected to hit $859 billion by 2023-24
With a federal election coming in the fall, the absence of policy debate on the federal debt is disappointing. Since 2013-2014, the interest-bearing debt of the federal government has increased from $904 billion to $1.025 trillion, a 13 ...