Alberta Central’s Chief Economist Charles St-Arnaud recently provided his analysis of the 2023 Federal Budget to the Financial Post. He looked at how the budget will impact debt levels and what that could mean for Canada’s overall economic health.
The 2023 federal budget can be summarized as bigger deficits in the coming year with no plans to balance the fiscal books. As such, the deficit for the 2023-24 fiscal year is expected to reach $40.1 billion (1.4 per cent of gross domestic product), about $10 billion bigger than expected in the Fall Economic Statement (FES).
He also notes that the lack of commitment to balancing the books and a wider deficit throughout the projection period are concerning, as they suggest that fiscal prudence may be slipping away. The continued increase in spending is a slippery slope, with the decline in the debt-to-GDP likely providing a false sense of comfort.
Read the full article here.