Prime Minister Mark Carney's government is on track to borrow billions more than projected just weeks after releasing its Spring Economic Update, according to a new report from the Parliamentary Budget Officer.The PBO's latest Economic and Fiscal Outlook projects federal deficits will exceed the government's own forecasts by an average of $4.6 billion annually, raising fresh concerns about Ottawa's spending and growing debt burden.The federal government projected it would borrow $65 billion this fiscal year in its Spring Economic Update. The PBO now estimates borrowing will reach $72 billion, a difference of $7 billion.The report also forecasts government spending will exceed budget projections by $5.7 billion this year.The findings prompted criticism from the Canadian Taxpayers Federation, which argued the government's spending plans are already proving unsustainable.“Carney’s borrowing is already billions of dollars over budget compared to the Spring Economic Update,” said CTF federal director Franco Terrazzano.“The government’s borrowing continues to spiral out of control because government spending continues to spiral out of control and that needs to stop.”The PBO report highlights the growing cost of servicing Canada's national debt.Debt interest charges are projected to reach $59 billion this year, exceeding both federal health transfers to provinces, estimated at $57 billion, and GST revenues, projected at $53 billion.The report also forecasts rising debt-servicing costs for Canadians over the coming years.“On a per capita basis, public debt charges are projected to climb from $1,288 in 2025-26 to $1,885 in 2030-31,” the PBO stated..The latest projections add to concerns about the federal government's fiscal trajectory as deficits continue and interest costs consume a growing share of government revenues.Terrazzano said the government should focus on reducing spending rather than increasing borrowing.“Carney was already increasing spending too fast in the Spring Economic Update and now the PBO shows he’s already billions over budget,” he said.“Carney needs to put down the credit card and pick up some scissors to cut spending. Taxpayers can’t afford to pay more than $1,000 every year to cover the government’s interest charges.”The PBO report comes as the federal government faces mounting pressure to balance spending commitments with efforts to control deficits and manage Canada's growing debt load.
