From 2019 to 2021, Canada had the second-highest increase in gross debt as a share of the economy out of 33 countries.
federal government debt
So-called "stimulus spending" displaces future private spending and reduces future economic growth.
In 2020, the federal expenditure share jumped to 40 per cent.
The federal government projects a budget deficit of $52.8 billion for 2022.
The Ontario government projects a $19.9 billion deficit this year and continued deficits until 2027-28.
The expansion of the Canada Child Benefit was financed largely by borrowing.
Federal debt interest will cost a projected $42.9 billion in 2026/27.
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.