In the wake of Tuesday's report from the Parliamentary Budget Officer (PBO), the Canadian Taxpayers Federation (CTF) has issued a call for the federal government to rein in spending and work towards balancing the budget.“PBO numbers show the government is running massive deficits for years to come with no plan to balance the budget. It’s time for Prime Minister Justin Trudeau to listen to the PBO’s warnings, put down the credit card, pick up some scissors and return to fiscal sanity," said Franco Terrazzano, the Federal Director of the CTF.The PBO report forecasts a staggering $41 billion deficit in 2024. This figure marks a significant increase from previous projections, with the PBO highlighting that deficits are expected to be $7.9 billion higher, on average, over the period spanning from 2023-24 to 2028-29. The primary reason cited for this surge in deficit is the upward revisions to the projection of direct program expenses, including new measures.Of particular concern is the projected cost of interest charges on the debt, estimated to reach $52.1 billion in 2024. This amount is equivalent to the federal government's expenditure on health transfers to provinces. By 2028, interest charges are forecasted to soar to $62 billion, surpassing the anticipated revenue from GST collections.Despite Finance Minister Chrystia Freeland’s commitment to reducing the debt-to-GDP ratio, the PBO report indicates a slight increase from 42.4 to 42.5% in 2024.Moreover, the government's previous pledge to find savings of $15.4 billion over the next five years has come under scrutiny. The PBO report reveals that spending is set to increase by nearly $20 billion in 2024 alone, casting doubt on the government's ability to curb expenditures effectively.Reacting to these findings, Terrazzano reiterated the CTF's stance, emphasizing that "this government’s spending is out of control." He called on Trudeau and Freeland to address the fiscal challenges facing the nation in the upcoming budget, urging them to demonstrate a commitment to restoring financial stability by balancing the books.
In the wake of Tuesday's report from the Parliamentary Budget Officer (PBO), the Canadian Taxpayers Federation (CTF) has issued a call for the federal government to rein in spending and work towards balancing the budget.“PBO numbers show the government is running massive deficits for years to come with no plan to balance the budget. It’s time for Prime Minister Justin Trudeau to listen to the PBO’s warnings, put down the credit card, pick up some scissors and return to fiscal sanity," said Franco Terrazzano, the Federal Director of the CTF.The PBO report forecasts a staggering $41 billion deficit in 2024. This figure marks a significant increase from previous projections, with the PBO highlighting that deficits are expected to be $7.9 billion higher, on average, over the period spanning from 2023-24 to 2028-29. The primary reason cited for this surge in deficit is the upward revisions to the projection of direct program expenses, including new measures.Of particular concern is the projected cost of interest charges on the debt, estimated to reach $52.1 billion in 2024. This amount is equivalent to the federal government's expenditure on health transfers to provinces. By 2028, interest charges are forecasted to soar to $62 billion, surpassing the anticipated revenue from GST collections.Despite Finance Minister Chrystia Freeland’s commitment to reducing the debt-to-GDP ratio, the PBO report indicates a slight increase from 42.4 to 42.5% in 2024.Moreover, the government's previous pledge to find savings of $15.4 billion over the next five years has come under scrutiny. The PBO report reveals that spending is set to increase by nearly $20 billion in 2024 alone, casting doubt on the government's ability to curb expenditures effectively.Reacting to these findings, Terrazzano reiterated the CTF's stance, emphasizing that "this government’s spending is out of control." He called on Trudeau and Freeland to address the fiscal challenges facing the nation in the upcoming budget, urging them to demonstrate a commitment to restoring financial stability by balancing the books.
