As Ottawa’s budget for the upcoming fiscal year is unveiled, many Canadians are left feeling like the country is once again taking a gamble at the casino – and losing.
The federal government’s budget, which was announced this week, reveals a staggering deficit of $354.2 billion – the largest in Canadian history. This massive shortfall is a result of the government’s efforts to combat the economic fallout from the COVID-19 pandemic, which has led to record levels of spending on programs such as the Canada Emergency Response Benefit and the wage subsidy.
While these measures have undoubtedly helped millions of Canadians weather the storm, the cost of such unprecedented government intervention is starting to become apparent. The deficit is projected to reach more than 19% of GDP, a level not seen since World War II. This has raised concerns among economists and policymakers about the long-term consequences of such massive government borrowing.
In addition to the deficit, the budget also revealed that the national debt is set to skyrocket to over $1 trillion in the next few years. This has led to fears that Canada’s credit rating could be downgraded, making it more expensive for the government to borrow money in the future.
Despite these alarming figures, the government is touting the budget as a necessary investment in Canada’s future. Finance Minister Chrystia Freeland has defended the deficit, arguing that the country cannot afford to skimp on pandemic support measures at this critical time.
However, critics have slammed the budget as being irresponsible and unsustainable. They argue that the government’s spending spree is akin to playing with fire, and that the bill will eventually come due in the form of higher taxes and reduced government services.
As Canadians come to terms with the implications of the budget, many are left wondering if the country is once again gambling with its financial future – and this time, the stakes are higher than ever. Only time will tell if the government’s bet pays off, or if Canada is left to deal with the consequences of its risky fiscal decisions.
