The federal deficit is set to explode this year and taxpayers will be left on the hook for record-breaking interest payments, according to a new report from the Parliamentary Budget Officer.The PBO’s latest Economic and Fiscal Outlook forecasts Ottawa’s deficit climbing to $68.5 billion in 2025. Interest payments alone are expected to cost $55.3 billion this year — more than the federal government spends on health-care transfers to the provinces. By 2030, debt charges are projected to hit $82.4 billion.The Canadian Taxpayers Federation says the numbers prove Prime Minister Mark Carney’s government has no control over its finances. “The PBO report should be a five-alarm siren to end the government’s debt-fueled spending spree,” said Franco Terrazzano, the CTF’s federal director. .“Carney must change course and cut spending because taxpayers can’t afford to pay more than $1 billion every week to cover the government’s debt interest charges.”The PBO also projects the federal debt-to-GDP ratio will rise from 41.7% this year to more than 43% in the years ahead. Carney’s borrowing plans will add $255 billion to the debt over four years — nearly double the $131 billion increase forecast in Justin Trudeau’s last fiscal update.“The truth is Carney plans to borrow billions of dollars more than Trudeau,” Terrazzano said. “After a decade of out-of-control spending, Carney must make government more affordable and cut spending.”Carney will table his first budget on Nov. 4.
