PBO report shows massive deficits for years to come

Author: Franco Terrazzano 2024/03/05

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

“PBO numbers show the government is running massive deficits for years to come with no plan to balance the budget,” said Franco Terrazzano, CTF Federal Director. “It’s time for Prime Minister Justin Trudeau to listen to the PBO’s warnings, put down the credit card, pick up some scissors and return to fiscal sanity.”

The PBO forecasts a $41 billion deficit in 2024. 

“Compared to our October outlook, we are projecting budgetary deficits that are $7.9 billion higher, on average, over 2023-24 to 2028-29,” according to the PBO. “This increase is largely due to upward revisions to our projection of direct program expenses (including new measures).”

The PBO projects interest charges on the debt will cost taxpayers $52.1 billion. That’s equal to the amount the federal government sends to the provinces through health transfers. In 2028, interest charges will cost $62 billion, which is more than the government expects to collect through its GST.

Despite Finance Minister Chrystia Freeland’s commitment to reduce debt-to-GDP, the PBO report forecasts the ratio to increase slightly from to 42.4 to 42.5 per cent in 2024.

In its last budget, the government said it would find “savings of $15.4 billion over the next five years.” However, the PBO shows spending increasing by almost $20 billion in 2024.

“This government’s spending is out of control,” Terrazzano said. “In the upcoming budget, Trudeau and Freeland need to show Canadians that they care about the state of the country’s finances and balance the books.”

The federal government will present its 2024 budget on April 16

A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.