PBO report shows massive deficits for years to come

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OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to rein in spending and balance the budget following today’s Parliamentary Budget Officer report.

“PBO numbers show the government is running massive deficits for years to come with no plan to balance the budget,” said Franco Terrazzano, CTF Federal Director. “It’s time for Prime Minister Justin Trudeau to listen to the PBO’s warnings, put down the credit card, pick up some scissors and return to fiscal sanity.”

The PBO forecasts a $41 billion deficit in 2024.

“Compared to our October outlook, we are projecting budgetary deficits that are $7.9 billion higher, on average, over 2023-24 to 2028-29,” according to the PBO. “This increase is largely due to upward revisions to our projection of direct program expenses (including new measures).”

The PBO projects interest charges on the debt will cost taxpayers $52.1
billion. That’s equal to the amount the federal government sends to
the provinces through health transfers. In 2028, interest charges will cost $62 billion, which is more than the government expects to collect through its GST.

Despite Finance Minister Chrystia Freeland’s commitment to reduce debt-to-GDP, the PBO report forecasts the ratio to increase slightly from to 42.4 to 42.5 per cent in 2024.

In its last budget, the government said it would find “savings of $15.4 billion over the next five years.” However, the PBO shows spending increasing by almost $20 billion in 2024.

“This government’s spending is out of control,” Terrazzano said. “In the upcoming budget, Trudeau and Freeland need to show Canadians that they care about the state of the country’s finances and balance the books.”

The federal government will present its 2024 budget on April 16.

For more information or to schedule interviews, please contact:

Franco Terrazzano
CTF Federal Director
Phone: 403.918.3532
Email: fterrazzano@taxpayer.com

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