So-called "stimulus spending" displaces future private spending and reduces future economic growth.
federal government debt
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.
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.