Debt interest charges fastest-growing cost: PBO

OTTAWA, ON: The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to stop borrowing money following today’s Parliamentary Budget Officer report that shows the cost of debt interest charges more than doubled since 2021.

“The fastest-growing cost in the government’s budget is the credit card bill and that should be setting off alarm bells in Ottawa,” said Franco Terrazzano, CTF Federal Director. “Carney is spending more, borrowing more and taxpayers are paying more than $1 billion every week just to cover interest on the debt.”

The PBO released its Economic and Fiscal Outlook today.

Debt interest charges are the federal government’s “fastest-growing expense,” according to the PBO report. The report shows that debt interest charges “are projected to more than double from $24.5 billion in 2021‑22 to $59.3 billion” this year.

Debt interest charges will cost each Canadian $1,419 this year.

The PBO report also highlights the weakness of the government’s two fiscal anchors: Balancing the operating budget and a declining deficit-to-GDP ratio.

“The two fiscal anchors have imposed limited fiscal discipline on government spending and borrowing,” according to the PBO report.

The government is borrowing $63.3 billion this year, according to the PBO. The government has no plan to stop borrowing money.

The PBO report shows Carney is on track to spend $13.5 billion over his own budget. In Budget 2025, the government said it would spend $588.5 billion this year. The PBO now projects the government spending $602 billion this year.

“Debt interest payments continue to spiral out of control because government spending continues to spiral out of control,” Terrazzano said. “Carney keeps telling Canadians he’s going to spend less, but he’s on track to spend $13.5 billion over his own budget.

“Carney needs to put down the credit card and cut spending in the upcoming budget because taxpayers can’t afford these debt interest charges.”

For more information or to schedule interviews, please contact:

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