Montréal, January 15, 2020 – While the federal government’s wager has paid off so far, as it accumulates budgetary deficits to stimulate growth in the Canadian economy, it would be risky to pursue this strategy in the coming years. That is the conclusion of a study released today by the Centre for Productivity and Prosperity – Walter J. Somers Foundation.
“According to the federal government’s current forecasts, the federal public debt will grow by about $84.7 billion over the next four years, given the deficits it plans to run,” explains Robert Gagné, CPP Director and co-author of the study. “If it does so, the federal strategy will have added more than $140 billion to the federal public debt in order to finance short-term economic growth. The problem is that this debt will remain in the long term, and may have serious consequences in terms of equity between generations of taxpayers.”