Ottawa’s plan to boost GST credits for lower-income households will add almost $14 billion to the federal debt once interest costs are included, according to a new analysis from the Parliamentary Budget Office, raising fresh questions about Ottawa’s ballooning deficits.Blacklock's Reporter says cabinet has pegged the cost of the expanded GST credit at $5.8 billion, but budget watchdogs say that figure significantly understates the true price tag. In a legislative costing note released yesterday, the Budget Office estimated the measure will cost $12.4 billion between 2026 and 2031, with an additional $1.398 billion in borrowing costs, pushing the total to roughly $13.8 billion. Finance Minister François-Philippe Champagne did not challenge the findings.The proposal, announced January 26, would increase GST credits by 50% this year for lower-income households, followed by 25% increases over each of the next five years. Current eligibility thresholds are $56,181 annually for individuals, $59,481 for married couples without children, and under $67,000 for single parents and couples with two children.“That is very significant,” Champagne told the House of Commons. “Everyone in the House should rejoice that we are going to meet the moment for Canadian families.”.Conservatives were not convinced. “How much will grocery prices go down after this benefit is adopted?” asked Conservative MP Jasraj Hallan of Calgary East. The finance minister did not answer.Hallan accused the government of reckless spending, saying the current prime minister has eclipsed even Justin Trudeau’s fiscal record. “We thought former prime minister Justin Trudeau was the worst money manager in Canadian history,” Hallan said. “This prime minister said, ‘Hold my champagne, watch what I can do.’ What he did was double the deficit.”Cabinet disclosed a $78.3 billion deficit on November 4, the largest in Canadian history outside of pandemic spending and 192% higher than originally forecast. The 2026 deficit was first projected at $30.8 billion, later revised to $65.4 billion, and has yet to be finalized..Debt interest alone cost taxpayers $55.6 billion last year, exceeding federal spending on health care or national defence. Ottawa has not balanced a budget since 2007.Despite the warnings, Champagne has continued to strike an optimistic tone. “We’re going to be okay as a country,” he said when tabling his most recent budget. “I know there’s uncertainty and a lot of concerns in families, but I would say tonight people will go to bed and say, ‘We’re going to be okay.’”
