Massive borrowing, soaring interest charges unacceptable

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to cut spending following today’s Parliamentary Budget Officer report showing debt interest charges cost taxpayers $54 billion in 2024-25.

“The PBO report shows debt interest charges cost taxpayers more than $1 billion every week,” said Franco Terrazzano, CTF Federal Director. “Massive deficits mean interest charges cost taxpayers more than the feds send to the provinces in health transfers.”

The PBO projects the federal government’s deficit to be $46 billion in 2024-25.

Interest charges on the federal debt cost taxpayers $54 billion in 2024, according to the PBO’s Economic and Fiscal Monitor. For comparison, the federal government spent $52 billion through the Canada Health Transfer in 2024, according to the Fall Economic Statement. That means the government spent more money on debt interest payments than it sent to the provinces in health-care transfers.

A separate PBO report projects debt interest charges will reach $70 billion by 2029.

A recent Leger poll shows Canadians want the federal government to cut spending (45 per cent) instead of increasing spending (20 per cent) or maintaining current spending levels (19 per cent).

“Borrowing tens of billions of dollars every year is unaffordable and unacceptable,” Terrazzano said. “Canadians want Prime Minister Mark Carney to put an end to Ottawa’s debt-fuelled spending spree.”

For more information or to schedule interviews, please contact:

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