The Hub: Canadians will soon pay more interest on national debt than federal funds for health care and child care combined
Prime Minister Mark Carney’s first budget has sparked concern among economists over rising federal debt and soaring interest costs, with the plan projecting that by 2029 “one in every eight dollars” of Ottawa’s revenue will go to debt charges. Critics warn the government is “doubling down” on earlier spending strategies and risking a return to 1980s- and 1990s-style fiscal pressures. Economists like Jack Mintz argue Carney’s approach to large-scale “generational investments” could backfire, warning that heavy borrowing “starts bidding up interest rates in Canada” while Fitch Ratings has already downgraded Canada due to a “rising debt burden.”
