Canada’s federal debt burden has climbed to more than $33,000 per person, with the country’s budget watchdog warning that rising interest rates or slower economic growth could put long-term finances at risk.Blacklock's Reporter says Annette Ryan told a Commons committee the per capita federal debt is projected to increase from $33,592 this year to $38,295 within five years, based on figures from the government’s spring economic update.She added that the annual cost of servicing that debt — effectively interest payments — is also expected to rise significantly, from $1,409 per Canadian to $1,901 over the same period.“The economy still remains tenuous,” Ryan said in testimony before the government operations committee, cautioning that the outlook depends heavily on stable economic conditions.Federal budget documents tabled this week propose adding $295.5 billion in new debt over the next five years. Canada has not recorded a balanced budget since 2007.Conservative MP Philip Lawrence questioned the assumptions underlying the projections, noting they rely on continued economic growth despite the historical likelihood of a downturn..“We haven’t had a global recession going on five years,” Lawrence said. “It’s very unlikely it will go another five years without having a recession.”He pressed Ryan on how a potential downturn would affect the outlook.“It’s an important question,” she replied, later acknowledging there is a “reasonable probability” of higher interest rates or slower growth — both of which could strain federal finances.Asked directly whether those risks raise concerns about sustainability, Ryan responded, “The short answer is yes.”Her comments mark a more cautious tone compared to remarks she made prior to formally taking office, when she described a deficit exceeding $60 billion as sustainable during a separate committee appearance.Ryan was appointed to the role on April 21 for a seven-year term with a salary of $349,000. She emphasized her independence, telling MPs she reports to Parliament, not the Prime Minister’s Office.“I work for parliamentarians,” she said. “I do not take direction from the Prime Minister’s Office.”Her predecessor, Jason Jacques, had previously issued stark warnings about the country’s fiscal trajectory, calling federal spending levels “alarming” and unsustainable.Jacques told MPs last year that Ottawa would eventually need to either raise revenues or cut spending to stabilize finances, warning the existing path could not be maintained indefinitely.
