Future generations will still be paying for the government’s growing debt if politicians do not curb spending, according to the Parliamentary Budget Office (PBO).
In its most recent Fiscal Sustainability Report, the PBO warns that the federal government will not return to a balanced budget until 2070 under the status quo.
In its estimate, the PBO says the government is projected to tack on an additional $2.7 trillion in debt before balancing the budget in 2070. Interest charged will cost Canadians approximately $3.8 trillion by 2070.
The Canadian Taxpayers Federation (CTF) voiced its concerns following the PBO’s shocking report.
“Racking up trillions of dollars in debt and interest is not okay, and that’s why we need to see federal politicians start taking deficits seriously,” said CTF federal director Franco Terrazzano.
“If things don’t change, Canadians will lose out on a tonne of money to the bond fund managers because of government debt interest charges. That money can’t go to health care or lower taxes because of these huge debt interest costs.”
In April, the Trudeau government revealed a $354 billion deficit in the 2021 budget. The government announced $100 billion in new spending but no plan for a balanced budget.
Canada’s federal debt recently surpassed $1 trillion dollars following a frenzy of pandemic spending by the ruling Liberal government.
The CTF took aim at the Trudeau government’s massive spending and disregard for fiscal restraint.
“Prime Minister Justin Trudeau promised Canadians he would balance the books in 2019, but it turns out that we will have to wait about 50 years before we see a balanced budget,” said Terrazzano.
“Politicians should not be okay with five decades of red ink and families shouldn’t be forced to pay for all the overspending, so we need the feds to roll-up their sleeves and save some money.”
Based on 2021 federal and provincial budgets, Canadians’ share of federal and government debt totalled $57,500 per person.