OTTAWA, ON: Canadian Taxpayers Federation Federal Director Aaron Wudrick released the following statement in response to today’s sovereign debt rating downgrade by Fitch Ratings, citing “the deterioration of Canada’s public finances in 2020 resulting from the coronavirus pandemic.”

“Credit downgrades mean higher interest costs, which will starve governments of already scarce revenues. The federal government cannot simply shrug off this downgrade. Getting Canada’s finances back on track won’t be easy, but it’ll only get harder the longer we wait.

“As Canada’s economy begins to reopen, it is imperative that the federal government begin to wind down emergency spending measures that both add to rising government debt levels and undermine our economic recovery.

“No country will be spared fiscal challenges as a result of the coronavirus pandemic, but we cannot afford to be complacent. We can’t risk further downgrades. The sooner the Trudeau government begins to address its massive budgetary deficit, the better the prospect of returning ourselves to an AAA rating and reduced borrowing costs.”