VANCOUVER—Federal government interest costs could increase to $35 billion in 2021-22, an increase of $13 billion, if costs return to 2019-20 levels, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.
“If interest costs increase, governments across Canada could see their already large budget deficits grow even larger,” said Jake Fuss, senior economist at the Fraser Institute and co-author of Interest Cost Risks to Government Budgets.
