The Canadian flag flies over the Peace Tower on Parliament Hill in Ottawa on Feb. 14, 2025. The Canadian Press/Adrian Wyld
The federal government’s spending plans could result in the country hitting an average yearly deficit of $78 billion over the next four years, adding approximately $350 billion to Canada’s debt in what a new report calls a potential “deteriorating fiscal outlook.”
The country’s deficit will hit over $92 billion in 2025–26 because of the Liberal government’s recent pledge to boost military spending to hit the NATO target of 2 percent of GDP by the end of the fiscal year, the C.D. Howe Institute said in a July 3 report.
