April 9, 2026
Federal Deficit Could Grow to $117 Billion by 2035: Report
Canada’s current fiscal trajectory will lead the federal deficit to grow to $117 billion by 2035, according to a new report. While the federal government’s latest budget projects a deficit of just $57 billion by 2029, the report by public policy think tank MEI said that increasing elderly benefits, transfers to provinces, and military spending [...]
TL;DR
- Canada's federal deficit is projected to reach $117 billion by 2035.
- This figure is higher than the government's projection of $57 billion by 2029.
- Increased spending on elderly benefits, provincial transfers, and military are cited as key drivers.
- Federal spending is expected to grow faster than revenues without policy adjustments.