Evidence suggests that a 1.0 percentage point increase in spending produces a 0.75 percentage point drop in economic growth.
federal government spending
Trudeau government—and provincial governments across Canada—can learn from past fiscal consolidations
The Trudeau government’s recent fiscal update forecasted a $343 billion deficit this year.
Indigenous and Northern Affairs represented the largest share of federal program spending growth.
The Trudeau government ran consistent deficits and accumulated significant debt over its first four years in office.
The CERB is now estimated to cost $61.1 billion compared to the original estimate of $40.6 billion.
Total expected federal per-person spending will eclipse $13,000 in 2020-21.
Ottawa raised personal income tax rates on Canadian workers.