By the end of the 2024-25 fiscal year, Canada’s total market debt is expected to surpass $1.4 trillion. Every day, this debt grows by more than $100 million, and every second, Canada pays more than $1,200 in interest.
Many Canadians are concerned about the growing deficit, raising concerns that Canada could, once again, be called “an honorary member of the Third World” or see its dollar be called the “Northern Peso.”
Fifty-five per cent of Canadians think the federal government’s spending is too high. In spite of this, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, postponed debt-reduction goals multiple times, and anticipates that the debt-to-Gross Domestic Product (GPD) ratio will keep growing for at least the next two years. For now, it seems the debt burden is here to stay, although the future of the Liberal government is uncertain with the end of the NDP-Liberal supply-and-confidence agreement.
