Federal debt interest charges cost each Canadian $1,400 this year

OTTAWA, ON: The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to cut spending following today’s Parliamentary Budget Officer report that shows debt interest charges are “showing a concerning upward track.”

“The PBO’s report shows that paying interest charges on the government debt will cost each Canadian about $1,400 this year,” said Franco Terrazzano, CTF Federal Director. “That’s $1,400 that the government is taking from each Canadian that can’t be used to hire nurses, fix potholes or lower taxes because the government is wasting that money paying interest on the debt.”

Federal debt interest charges are “showing a concerning upward track,”according to the PBO’s assessment of the federal government’s Spring Economic Update.

“On a per capita basis, public debt charges are projected to climb from $1,409 in 2026-27 to $1,901 in 2030-31,” according to the PBO.

Debt interest charges will “rise from 10.6 per cent to 13.2 per cent of revenues between 2025-26 and 2030-31,” according to the PBO.

The Spring Economic Update shows that debt interest charges will cost taxpayers $58.7 billion this year. That’s more than the federal government will send to the provinces in health transfers ($57.4 billion) or collect through the GST ($53.4 billion).

The PBO found that each Canadian’s share of the total federal debt will rise from $33,592 this year to $38,295 in 2030.

The PBO also found that the federal government is on track to spend $6.3 billion over its budgeted spending this year.

“Debt interest payments continue to spiral out of control because spending continues to spiral out of control,” Terrazzano said. “Carney just released his budget six months ago and he’s already on track to spend $6 billion over budget.

“Carney needs to reverse course and put down the credit card because taxpayers can’t afford to pay $1,400 covering the government’s interest charges.”

For more information or to schedule interviews, please contact:

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