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May 31, 2024 · The fiscal responses of Canadian federal governments to budget deficits have depended on the ratio of net debt to GDP and the ratio of interest payments to revenue. When the federal government has a debt-to-GDP ratio exceeding 37.1% or ratios of interest payments to revenue above 12.5%, they have responded to budget deficits by reducing program ...
- A Case for Spending Restraint in Canada: How the Federal ...
A distinct lack of spending restraint has resulted in a...
- A Case for Spending Restraint in Canada: How the Federal ...
When the federal government has a debt-to-GDP ratio exceeding 37.1% or ratios of interest pay-ments to revenue above 12.5%, they have responded to budget deficits by reducing pro-gram spending and raising revenue. When debt or interest-cost ratios have been below these thresholds, governments have postponed fiscal adjustments.
Aug 3, 2023 · The federal government reported a federal deficit of $1.13 trillion at the end of the 2021-2022 fiscacanadal year, an increase of 8.2 per cent from the previous fiscal year. Adjusted for current ...
- Deficit Falls as Pandemic Ends
- Growing Up
- Increased Health Spending
Trevor Tombe is a professor of economics at the University of Calgary and co-director of Finances of the Nation, an online publication which features analysis and commentary on Canadian fiscal policy from a non-partisan perspective. "We should not look at deficits right now as indicative of what's normally the case," Tombe said. "These are exceptio...
O'Toole is not wrong to look to economic growth as a plausible means of eliminating the deficit, Tombe says. "A growing economy means higher levels of income. A growing population is going to mean more taxpayers. So, roughly speaking, federal revenue is going to grow along with the size of the Canadian economy," Tombe said. But would annual economi...
It's important to note that O'Toole is proposing no reduction to overall federal government spending. His proposal includes a spending increase in health initiatives, for example, so there will likely be cuts in some other areas. "All governments cut something, somewhere, and they increase spending elsewhere. Absolutely every party has something th...
Feb 13, 2024 · A distinct lack of spending restraint has resulted in a string of large budget deficits, which have contributed to rising government debt and debt interest costs. Despite current fiscal plans promising more of the same, the federal government could implement decisive spending reform starting in 2024/25, similar to reforms implemented in the 1990s, and balance the budget within one or two years.
Mar 28, 2023 · The federal deficit is projected to be $40.1 billion in 2023-24, nearly $10 billion more than forecast in last fall's economic snapshot. A slowing economy and new Liberal spending are behind this ...
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Oct 28, 2020 · David Andolfatto. Canada’s federal deficit is currently forecasted to be $343 billion in fiscal year 2020-21, or more than 15% of gross domestic product (GDP). Not surprisingly, this deficit and the associated accumulation of debt is attributable to the government’s response to the COVID-19 pandemic. Federal budget deficits are, however ...
