Canada projecting deficits until 2040, finance report reveals
The federal government is projecting deficits until at least 2040, a finance report quietly released Friday reveals. The federal debt is also set to hit $1 trillion for the first time in 2035.
These shocking figures are actually an improvement upon the long-term economic and fiscal projections released this time last year. The goal of such reports is to take current government spending trends and show what will happen if they continue in later years.
Canada is on track to run a $10.4 billion deficit in 2040 and a $10.9 billion surplus in 2045. The table provides figures for every five years, suggesting the books will return to the black sometime around 2042.
Last year’s report revealed deficits until the 2050s and warned that the spending path the Trudeau Liberals put the country on “would be sufficient to put at risk the fiscal sustainability of the federal government.” The new report sounds no such alarms.