The cost of debt is rising.
Looks like that federal budget isn’t balancing itself.
As noted in a CP report, the deficit in the first two months of the fiscal year – April & May – was $1.4 billion.
Stunningly, government spending surged a whopping 13.5% in that time, showing the Trudeau Liberals still can’t get spending under control.
Keep in mind, even with all of this increased spending, Canada’s economy continues to slow down.
The deficit numbers are deeply concerning, especially when you consider that in April & May of 2019 the federal government ran a surplus of $3.2 billion, while still running a large deficit for the year.
Among the contributors to the rise of red ink is the growing cost of servicing the federal debt, a cost that could get even worse if interest rates increase.
While Trudeau wants Canadians to forget it, we remember that he promised 3 years of small deficits before balancing the budget this year. Instead, there are deficits as far as the eye can see, with a projected deficit of about $20 billion this year.