Montreal, December 1st, 2020 – With Ottawa announcing a deficit of nearly $400 billion, the MEI believes it is pertinent to show, in real time, the consequences of this mounting debt for Canadian citizens. The debt is over $1,048 billion, the equivalent of $33,865 per taxpayer. From now until the end of the fiscal year in March 2021, the debt will increase by $1 billion a day or $41 million an hour.
“The federal government’s public finances are out of control. This was already true before the crisis, even though the economy was doing well. The government was spending far too much and seemed unconcerned with the bill to be paid down the road. But since the crisis, it’s gotten even worse,” says Miguel Ouellette, Economist and Director of Operations at the MEI.
“It’s one program after another. It’s raining dollars, but transparency and accountability seem to have gone out the window. And despite its promises in this regard, it’s hard to see how this government will be able to return to a balanced budget in a reasonable time frame,” adds Mr. Ouellette.
The MEI has therefore designed a Federal Debt Clock to show the evolution of the net debt in real time, from now until March 31, 2021. This is all the more relevant given that in its economic update, where it declares a $381 billion deficit for the current fiscal year, the federal government has announced new spending that will cost up to $100 billion more.
“Just to get an idea of the seriousness of the situation, consider one more figure: During the minute it took you to read this press release, our public debt has already increased by $728,000,” says the economist. “I’m sure you’ll agree that this can’t go on like this.”
To consult the MEI’s Federal Debt Clock, click here.
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