Canadas Debt To GDP Rising Again... Unsustainable Says Parliamentry Budget Officer

[Economy 52,854]

https://www.bnnbloomberg.ca/business/politics/2025/09/28/were-at-the-precipice-parliamentary-budget-officer-warns-ahead-of-budget/

 

Canadas deficit continues to grow. At an expected $68B it is abkut 3% of GDP, with current slow growth the economy is not outgrowing the ratio

 

Canadas debt to GDP at just over 41% is expected to rise to 43% over the next 5 years.

 

While 43% is very low by Developed Nation Standards and rulling politicians like to cosntantly point out that it is the lowest in the G7, it makes the true picture highly misleading.

 

Canada is one of the most decentralized Nations in the world when it comes to spending. Provinves are 30% to 40% of taxes and spending. And thats not factoring in that Quebec, the 2nd largest Province largely runs its own finances and programs to an even higher ratio than that.

 

43% may be fine for a typical nation but is pretty bad for a Country where much additional debt is held by Provinces and the Federal Governments tax share of the economy is lower than most Nations

[Quentin 6,777]

Same problem in France!

[dynamite 66,629]

Omg you've got your own tag you've made it 

[Economy 52,854]

5 hours ago, dynamite said:

Omg you've got your own tag you've made it 

 

5 hours ago, dynamite said:

Omg you've got your own tag you've made it 

Oldest joke on GGD tbh

[Economy 52,854]

5 hours ago, Quentin said:

Same problem in France!

Whats ur overall government debt at now?

[Quentin 6,777]

35 minutes ago, Economy said:

Whats ur overall government debt at now?

I don't remember clearly but I think it's a little bit more than our GDP

[Economy 52,854]

44 minutes ago, Quentin said:

I don't remember clearly but I think it's a little bit more than our GDP

The new normal

 

I forget Canadas metric if we include provinces but i think its also near 100% as well

[Quentin 6,777]

14 minutes ago, Economy said:

The new normal

 

I forget Canadas metric if we include provinces but i think its also near 100% as well

I had a teacher at the University who said that as the GDP increases, debt will become a less critical number over time 

[Economy 52,854]

7 minutes ago, Quentin said:

I had a teacher at the University who said that as the GDP increases, debt will become a less critical number over time 

Yeah, i also heard those same claims... yet we all see where the tragectory is