The federal government’s gross debt increased by 50% since the start of the Trudeau government’s first mandate, shows an Economic Note published this morning by the Montreal Economic Institute..The debt burden was growing steadily, according to Nathalie Elgrably-Lévy, senior economist at the MEI and author of the note, available at https://www.iedm.org/wp-content/uploads/2023/04/note062023_en.pdf..“Except for one year when it shrank slightly, the gross debt has been growing constantly since 2008, and that growth accelerated since 2016,” says Elgrably-Lévy..“Yet money doesn’t seem to be a constraint for Ottawa. This government’s obsession with putting everything on the credit card is particularly worrisome.”. DebtDebt .The gross debt includes all the federal government’s debts and unfunded financial commitments. It totalled over $1.8 trillion on March 31, 2022, or $47,179 per Canadian..The study demonstrates even before the COVID-19 pandemic, the federal government embraced deficits, with increases in spending having outpaced revenue increases since the Trudeau government took office..MEI says economic literature associates a growing government debt with a reduction in funds available for helping the most vulnerable, with a slowdown in economic growth. It also creates intergenerational inequity as the burden of the debt is left for future generations to deal with..“The growth of the debt is not without consequences. It reduces investment in other spheres of economic activity, reduces our capacity to help the most vulnerable, and leaves an enormous burden for future generations,” says Ms. Elgrably-Lévy. .“Unfortunately, Canadians will be paying for this government’s short-sightedness for a long time to come.”.The paper pointed out as late as April of 2015, Justin Trudeau was still promising a balanced budget during the first year he got elected. That later changed to the end of his first term. The latest budget projects a slight surplus in 2028. However, by then the federal government will have introduced $52.2 billion in new spending..The net federal debt is only $1.2 trillion, according to DebtClock.ca, which is a website of the Canadian Taxpayers Federation. That places the share of the average Canadian at $34,899.01. However, it also represents daily growth of $144,931,507.85.
