Finance Minister Chrystia Freeland refused to answer a direct question on whether the federal deficit exceeded $40 billion last year, fuelling assumptions that it did.In April, Freeland had committed to respecting three “fiscal anchors,” namely that last year’s deficit would not exceed $40.1 billion; that the debt-to-GDP ratio for 2024-2025 would be lower, relative to projections in the 2023 fall economic update; and that the debt-to-GDP ratio would diminish in 2024-2025 and remain below 1% as of 2026-2027.In a press conference Tuesday, the minister refused to confirm that the government had met its deficit target. Instead, she reiterated the accomplishment of a lower debt-to-GDP ratio.“If your debt is declining as a share of the economy, by definition, your fiscal position is sustainable and that is really important,” she said. “When it comes to the deficit, Canada has the lowest debt-to-GDP ratio and the lowest deficit in the G7 and that’s important too.”In October, the Parliamentary Budget Officer reported that Canada had likely surpassed its deficit pledge by over $6 billion.Emmanuelle B. Faubert, economist at the Montreal Economic Institute (MEI), expressed disappointment at the government's failure.“Once again, the federal government can’t even respect the most modest of deficit control objectives,” Faubert said in an MEI press release. “What Finance Minister Chrystia Freeland is telling us today is that she has lost control of spending.”Faubert states that the failure to respect this anchor, combined with the rapid increase in the government workforce, suggests a lack of spending control in Ottawa.In a study published in January, the MEI noted that the number of federal employees had increased by 37.9% since the Trudeau government took office.According to DebtClock.ca, a site maintained by the Canadian Taxpayers Federation, Canada's federal debt sits at $1.243 trillion. Based on the most recent confirmed information, this debt is increasing at $4.57 million an hour or $109.8 million per day. Federal debt per capita sits at $29,668.Freeland's fiscal update will be delivered December 16.
Finance Minister Chrystia Freeland refused to answer a direct question on whether the federal deficit exceeded $40 billion last year, fuelling assumptions that it did.In April, Freeland had committed to respecting three “fiscal anchors,” namely that last year’s deficit would not exceed $40.1 billion; that the debt-to-GDP ratio for 2024-2025 would be lower, relative to projections in the 2023 fall economic update; and that the debt-to-GDP ratio would diminish in 2024-2025 and remain below 1% as of 2026-2027.In a press conference Tuesday, the minister refused to confirm that the government had met its deficit target. Instead, she reiterated the accomplishment of a lower debt-to-GDP ratio.“If your debt is declining as a share of the economy, by definition, your fiscal position is sustainable and that is really important,” she said. “When it comes to the deficit, Canada has the lowest debt-to-GDP ratio and the lowest deficit in the G7 and that’s important too.”In October, the Parliamentary Budget Officer reported that Canada had likely surpassed its deficit pledge by over $6 billion.Emmanuelle B. Faubert, economist at the Montreal Economic Institute (MEI), expressed disappointment at the government's failure.“Once again, the federal government can’t even respect the most modest of deficit control objectives,” Faubert said in an MEI press release. “What Finance Minister Chrystia Freeland is telling us today is that she has lost control of spending.”Faubert states that the failure to respect this anchor, combined with the rapid increase in the government workforce, suggests a lack of spending control in Ottawa.In a study published in January, the MEI noted that the number of federal employees had increased by 37.9% since the Trudeau government took office.According to DebtClock.ca, a site maintained by the Canadian Taxpayers Federation, Canada's federal debt sits at $1.243 trillion. Based on the most recent confirmed information, this debt is increasing at $4.57 million an hour or $109.8 million per day. Federal debt per capita sits at $29,668.Freeland's fiscal update will be delivered December 16.
