Let's take a look at the facts.....
We are at historic lows here for interest payments.
Sources and data:
That is, debt servicing costs are very likely to come in under budget. 4/x
Why? Because the existing tax structure raises revenue on new GDP as the economy grows. This increase is larger than the interest on new debt, when deficits are small (like now).
So, the first-term extra debt is about $71B.
At today's 1.45% 10-yr yield, that costs us $1B/yr to service.
That's not nothing! But it is also not large in a $2.3T economy.
So, what response do you have in mind for the *feds*?
Higher transfers from feds to provs?
Lower fed taxes to create tax room for provs? (which would require fed spending cuts....)
Good debate to have!
This is falsified by looking at almost *any* country or province. Deficits go up and down. Under govts of all stripes.
"Over the past five years, Canada has employed a judicious mix of policies to support inclusive growth"
This is from the *IMF*, not known as wild spendthrifts, lol.