Aging population and historically high spending pre-COVID mean no balanced budget for next 30 years

VANCOUVER—The federal government will not balance its budget over the next 30 years as a result of Canada’s aging population and Ottawa’s historically high spending, which existed before the COVID-19 pandemic and may be increased further in the Throne Speech, finds a new study by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “Before any potential new spending is announced in the Throne Speech, Ottawa is facing decades of red ink that will inevitably weaken Canada’s federal finances and place a real burden on future generations,” said Jake Fuss, economist at the Fraser Institute and co-author of Canada's Aging Population and Long-Term Projections for Federal Finances.