The Canadian Taxpayers Federation (CTF) is urging the federal government to rein in spending and balance the budget after a new Statistics Canada report revealed a sharp 29% increase in government debt interest charges over the past year."About 11 cents out of every dollar from taxpayers is now going toward paying interest on the debt," said Franco Terrazzano, CTF’s Federal Director on Tuesday."Taxpayers are losing out on more than $1 billion every week that could be used to lower taxes or improve services because that money is going to pay interest on the government credit card."Statistics Canada’s Government Finance Statistics report for the second quarter showed that the federal government allocated 10.9 cents of every revenue dollar to cover interest costs. This substantial rise in interest expenses comes amid a projected $40-billion deficit for the 2024 fiscal year, according to the federal budget.The federal government is also facing an estimated $54 billion in debt interest payments for the year — an amount that exceeds what it will transfer to provinces for healthcare funding.The CTF, citing supplementary data from the Parliamentary Budget Officer's latest Fiscal Sustainability Report, pointed out that the federal government is not on track to balance the budget until 2040."This report should serve as a wake-up call for Prime Minister Justin Trudeau," added Terrazzano. "The feds need to cut spending and balance the budget before debt interest charges blow an even bigger hole in the budget."The escalating interest costs come as economic pressures grow, sparking concerns over the long-term financial sustainability of federal programs and services.
