Decades of budgetary deficits for Canada?

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Bill Morneau

OTTAWA – Federal numbers released quietly by the government late last month are painting a bleak picture of Canada’s financial future — one filled with decades of deficits.

The report, published on the Finance Department website two days before Christmas, predicts that barring any policy changes the federal government could be on track to run annual shortfalls until at least 2050-51.

The document says that if such a scenario plays out, the federal debt could climb past $1.5 trillion by that same year — more than double its current level.

To help explain the prediction, the report points to the major economic challenge caused by the gradual retirement of baby boomers. The demographic shift is expected to shrink work-force participation, erode labour productivity and drive up expenditures for things like elderly benefits.

However, the report cautions that its projections are intended to represent a plausible baseline and insists they are not forecasts because long-term estimates are inherently uncertain.

For example, the document estimates policies that successfully boost labour force participation and productivity over the coming decades have the potential to increase economic growth by as much as 22 per cent by 2055 and improve the outlook.

1 COMMENT

  1. This federal liberal government is like putting a child in charge of the family budget. The spoiled kid screams, SPEND, SPEND, SPEND which results in DEBT,DEBT,DEBT. The spoiled child shrugs his shoulders and says, “yeh, so what “? Now let’s go out and buy some legal marijuana and our problems will simply disappear, like smoke. We’re in big trouble folks. Just read the headlines about where our DEBT is going. Our children and grand children will pay heavily for those of you who put the child-like pm trudeau in charge of the budget of this country. Oh, wait a minute, justin did say that “the budget will balance itself”. Oh goody Justin. Thanks. Oh, wait, sorry but it appears justin has been into the weed already. We’re in trouble my fellow Canadians. Big trouble. Hang on to your wallets………………..

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