The federal debt-to-GDP ratio is on track to increase between 2022-23 and 2023-24.
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.