From Nationalpost · · 1m
Slowing Economy Means More Red Ink for Carney's Budget
PBO warns Carney's budget will face deeper red ink as economy slows.
In brief
PBO warns Carney's budget will face deeper red ink as economy slows. Canada's economy slowing to 0.9% growth this year will increase federal debt by $333.3 billion over five years, pushing the budget deficit to $83 billion by 2030-31. Originally reported by Nationalpost.
Economy Slowing
The Canadian economy will grow this calendar year by 0.9 per cent and 1.5 per cent in 2027, down from 1.1 per cent and 1.6 per cent forecast four months ago.
Debt Costs Rise
Federal debt charges are projected to more than double from $24.5 billion in 2021-22 to $59.3 billion this fiscal year.
Deficit Growth
The federal deficit for this year is projected to be $59.3-billion, climbing to $83-billion by 2030-31, an average of $3-billion higher per year than expected four months ago.
Debt Accumulation
Ottawa has accumulated $1.27-trillion in total debt, with $333.3-billion added over the next five years, a 26.2 per cent increase in government debt.
The big picture
Canada's economy slowing to 0.9% growth this year will increase federal debt by $333.3 billion over five years, pushing the budget deficit to $83 billion by 2030-31.
