Canada’s weak growth and persistent federal deficits point to deeper challenges in the country’s economic and fiscal trajectory. Under both the federal government’s current fiscal outlook and the Parliamentary Budget Officer’s latest projections, deficits are expected to persist through 2030/31, while federal debt and debt-servicing costs continue to rise. In comparison, the C.D. Howe Institute’s 2026 Shadow Budget returns the federal budget to balance by 2030/31 and reduces the debt-to-GDP ratio to about 40 percent.
For more on how Canada can strengthen economic growth and put federal finances on a sustainable path, read The Growth Imperative: The C.D. Howe Institute’s 2026 Shadow Budget.
