VANCOUVER—As the height of the COVID-19 pandemic passes and temporary support programs wind down, governments in Canada should be moving aggressively towards balanced budgets and even surpluses to pay down debt rather than continuing to borrow, finds a new essay released by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
The essay notes that the federal government recorded a $327.7 billion deficit in 2020-21 and a deficit of $113.8 billion in 2021-22. This is 27.8 per cent larger than the deficit incurred in the aftermath of the 2008-09 recession despite a strong recovery.
