Federal debt is projected to rise from 42.4 per cent of GDP in 2022 to 43.5 per cent of GDP in 2023.
The budget projects a deficit of $40.1 billion in 2023/24, which is nearly $10 billion higher than projections in November.
The federal debt-to-GDP ratio is on track to increase between 2022-23 and 2023-24.
The total value of government debt in 2022 in Canada exceeded the entire size of the economy by more than 10 per cent.
The effects of a recession could set off a debt “doom loop” with the debt ratio spiralling upward.
According to forecasts, federal spending will be $89.2 billion higher than previously projected for 2022/23 and $80.7 billion higher in 2023/24.
Residents in all provinces already pay more than $550 per person annually on government debt interest.
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.