OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to immediately cut spending following today’s Parliamentary Budget Officer report showing the deficit is $6.6 billion over budget. 

“As bad as the budget was, the independent budget watchdog is showing federal finances are in even worse shape,” said Franco Terrazzano, CTF Federal Director. “The Trudeau government continues to mismanage our finances and that means more money wasted on interest charges, higher taxes and more debt that Canadians’ kids and grandkids have to pay back.”

The PBO’s October 2024 Economic and Fiscal Outlook projects this year’s deficit at $46.4 billion. That’s up from Budget 2024’s deficit of $39.8 billion. 

“Compared to our March 2024 outlook, we project budgetary deficits that are $4.1 billion higher, on average, over 2023-24 to 2028-29,” according to the PBO. “This increase is largely due to new spending measures announced by the Government.”

Interest on the debt will cost taxpayers $52.8 billion this year, according to the PBO. For comparison, the federal government will spend $52.1 billion through its Canada Health Transfer this year. 

Almost 11 per cent of the government’s revenue will go to paying interest on the debt this year, which is above the pre-pandemic level of seven per cent, according to the PBO. 

“It’s 2024, the pandemic is over, so it’s ridiculous and unacceptable for the government to be running a $40-billion deficit,” Terrazzano said. “Massive deficits for years mean debt interest charges now blow a $1-billion hole in the budget every week.

“The government must cut spending.”