The Canadian Taxpayers Federation is calling on the federal government to rein in spending and cut taxes following the release of the 2023 fiscal update.

“This is the first time this government is starting to recognize reality, but spending is still billions higher than last year and the deficit is bigger,” said Franco Terrazzano, CTF Federal Director. “This budget update proves the government must cut spending because interest charges on the federal debt already cost taxpayers almost $4 billion a month.”

The budget update shows spending will be $488.7 billion this year. That’s up from last year’s spending of $473.5 billion.

The deficit is increasing from $35 billion to $40 billion this year. There is no plan to balance the budget.

“Interest charges on the government credit card will cost each Canadian an average of more than $1,000 this year,” Terrazzano said. “Taxpayers are losing out on almost $4 billion every month that can’t be used to improve services or lower taxes because that money is going to the bond fund managers just to cover the government’s debt interest charges.”

The debt will grow to $1.2 trillion by the end of 2023. Interest on the debt will cost $46.5 billion this year.

The fiscal update didn’t include any significant tax relief.

“Prime Minister Justin Trudeau isn’t saving Canadians money on their taxes,” Terrazzano said. “Trudeau won’t even do the simple things to save taxpayers money like ending his undemocratic alcohol tax escalator or taking the carbon tax off everyone’s home heating bills.

“The budget update is an admission that the government has a spending problem, but Trudeau still isn’t serious about managing our finances or providing real tax relief.”