Federal debt is projected to rise from 42.4 per cent of GDP in 2022 to 43.5 per cent of GDP in 2023.
federal government budget
When spending is financed by large deficits, it can fuel inflation or impede economic growth.
The budget projects a deficit of $40.1 billion in 2023/24, which is nearly $10 billion higher than projections in November.
The budget speech never mentioned the word “entrepreneurship."
The Trudeau government has recorded the five highest levels of federal spending per person in Canadian history.
The government says it’s spent more than $120 billion on climate change since 2015.
Between 2015 and 2019, Ottawa ran five consecutive deficits, causing federal debt to rise by $112 billion.
According to the budget, federal spending will reach $434.3 billion this year, more than a two-thirds increase in less than a decade.
If the federal government reduced spending, it could help lower inflation and limit the increase in interest rates.
The Ontario government projects a $19.9 billion deficit this year and continued deficits until 2027-28.