As the Liberals table their first budget today, federal government debt has reached $692 billion.
federal budget
Since 2007/08, Canada’s federal debt has grown by $176 billion to $692 billion in 2015/16.
On the eve of the new Liberal government’s first federal budget, the key is to get incentives right at home.
The new federal Liberal government will table its first budget next week, with media reports suggesting a deficit triple the amount promised during the election campaign.
The TD forecast shows a persistent federal deficit of approximately $30 billion a year for the foreseeable future.
Per capita federal net debt (in 2015 dollars) grew from $577 in 1870 to $19,302 in 2015.
Once new major spending is factored in, the annual deficit is likely to be more than $25 billion.
Prime Minister Trudeau recently mused that not only will the $10 billion deficit ceiling be broken, but the return to a balanced budget by 2019/20 is now in question.
Today, newly minted federal Finance Minister Bill Morneau released his first Update of Economic and Fiscal Projections. Unfortunately, the outlook isn’t positive.