PBO forecasts bigger deficits for years to come

Author: Franco Terrazzano 2024/04/30

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to cut spending and balance the budget following today’s Parliamentary Budget Officer report forecasting higher deficits. 

“Budget 2024 was bad, but the PBO report forecasts the Trudeau government will be running even bigger deficits,” said Franco Terrazzano, CTF Federal Director. “This PBO report should be a wake-up call for Prime Minister Justin Trudeau: get a hold of your spending or interest charges will keep ballooning.”

The PBO projects a $46-billion deficit this year. Budget 2024 projected a $40-billion deficit.

“PBO’s projected budgetary deficits are $5.3 billion higher annually, on average, over 2023-24 to 2028-29,” according to the report. 

In Budget 2023, Finance Minister Chrystia Freeland said the government would find “savings of $15.4 billion over the next five years.” 

However, “in Budget 2024, the government announced $61.2 billion in new spending,” according to the PBO. “Since Budget 2021, the government has announced a total of $251.6 billion in new spending measures.”

Interest charges on the debt are expected to cost taxpayers $54 billion this year, according to Budget 2024. 

“Every penny collected from the GST will now go to cover interest charges on the Trudeau government’s credit card,” Terrazzano said. “Trudeau must balance the budget, cut spending and stop wasting more than $1 billion every week on interest charges.”

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Franco Terrazzano
Federal Director at
Canadian Taxpayers

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