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.
federal government spending
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.
Canada's productivity growth and levels of business investment have been lacklustre for decades.
The federal debt is expected to eclipse $2 trillion by 2025-26.
Rules that impose mandatory fiscal discipline help produce better and more responsible fiscal outcomes.
Ottawa will likely have more revenue—perhaps considerably more—than forecast when the government tables the budget.
Federal net debt will reach a projected $1.3 trillion in 2021/22.
Alberta, Saskatchewan and Newfoundland require the most policy action to correct their unsustainable fiscal trajectories.