Pandemic spending this year is expected to hike Canada’s combined federal and provincial debt to $2 trillion, double the $1 trillion debt in 2007-08, according to a new study by the Fraser Institute.
The figures, adjusted for inflation, mean that in the current fiscal year, Canada’ combined debt will equal 91.6% of the annual output of the Canadian economy, up from 65.2% last year.
Much of this spending has been to support Canadians economically during the pandemic, but eventually record debt levels will have to be addressed, the study warns.
The Fraser Institute report here.
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