CTF: Time to end Ottawa's deep dive into debt
OTTAWA, ON: The Canadian Taxpayers Federation is looking for a plan to balance the books in tomorrow’s federal budget.
“It’s time for the Trudeau government to give taxpayers a concrete plan to balance the books,” said Franco Terrazzano, Federal Director of the CTF. “The federal government could balance its budget within a few years by returning to pre-pandemic spending, which was already at all-time highs.”
The CTF’s pre-budget submission recommends balancing the budget in 2023-24 by bringing program spending to pre-pandemic levels in 2018-19 (adjusted for inflation and population growth). The federal government was spending all-time highs before the pandemic, in 2018-19. The CTF presented its budget recommendations to the federal finance committee.
The federal government is currently $1.2 trillion in debt. Each Canadian’s individual share of the debt is about $31,000. Debt interest charges are projected to cost Canadian taxpayers $26 billion this year.
Data from the Parliamentary Budget Officer shows that on Budget 2021’s trajectory, the federal government wouldn’t balance the budget until 2070.
“It’s time to stop racking up a bigger tax bill and balance the budget,” said Terrazzano. “A balanced budget means we pay less interest to bond fund managers and have more money to build roads, hire nurses and lower taxes.”
The CTF’s 2022-23 pre-budget submission is available here. The CTF’s presentation to the federal finance committee is available here.