As governments spend with deficit budgets, Canada’s debt grows in the trillions
Craig Alexander has served as chief economist at Deloitte Canada, the Conference Board of Canada and Toronto-Dominion Bank.with fiscal projections showing continued deficits for the next five years. The government’s narrative is that despite an increase in the debt-to-GDP ratio this year, the peak of 43.5 per cent and the decline in the ratio in the next four years shows that the country can afford the additional borrowing.
Canadian government debt has also risen dramatically. Combined federal-provincial debt in Canada has roughly doubled since 2007 and the aggregate government debt-to-GDP ratio was likely around the 75-per-cent mark in 2022. Those in support of government deficit spending argued that deficits didn’t matter because the cost of debt was cheap because of low interest rates. So, deficits became the norm and then came the need to provide stimulus during the pandemic, which ultimately saw governments deliver an excessive fiscal response.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: Canadians deserve access to more transparent city budgetsMost cities present few, if any, budget projections as clearly as they present the results of their financial statements
Read more »
Opinion: AI could revitalize local journalism, but only if we demand better digital municipal recordsAs the number of local news publications continues to dwindle, we can no longer depend on a local beat reporter to sit in on the everyday proceedings of municipal politics
Read more »
Opinion | Chrystia Freeland’s upcoming budget likely influenced by Joe BidenThe Star has learned some of the tax credits in Tuesday’s budget will be higher for businesses or projects that employ higher-wage workers.
Read more »
Opinion: When recruiting nurses internationally, Canada must be wary of crossing ethical linesWe cannot simply take from other countries – we must support their health care environments as well, for the global benefit of all
Read more »
Opinion: Canadian detainees in Syria should be brought home immediatelyOttawa should drop its appeal and honour the Federal Court’s repatriation order
Read more »
Opinion: Budget 2023: Canada’s economy faces mounting challenges – here’s how we overcome themGeopolitics, fiscal policy and uncertain growth – Canada is facing three powerful challenges that require a coherent economic and fiscal strategy
Read more »