and interest rates are going up! Is there a single Canadian province that has a balanced budget?
This is what our high salaried residents of City Hall just don’t understand. Any money that comes from Queens Park or Ottawa is borrowed money. That money is taxes paid by people who are not yet old enough to work or people that have not yet been born.
The overspending has to stop. We cannot continue to live beyond our means. All levels of governments have to stop trying to be everything to everyone. We just cannot afford it.
Federal government’s total ‘market debt’ now tops $1 trillion, documents show
Former budget officer warns federal books at risk of fiscal shock in the face of rising interest rates
The federal government’s market debt — the debt on which Ottawa pays interest — has topped $1 trillion for the first time, Department of Finance documents show.
It is a milestone, says former parliamentary budget officer Kevin Page.
The threshold, he said, highlights the urgent need for the Liberal government to have a strategy to both balance the federal books and manage the debt in an era of rising interest rates.
“It’s important for Parliament to wrap its head around borrowing,” Page told CBC News.
Market debt is different from the federal debt and deficit figures, which are regularly presented to and debated by Canadians and reflect the federal government’s estimated total liabilities, or cash needs, and what must be borrowed from the markets.
Think of market debt as something like a mortgage — or the balance on a line of credit.
“It’s debt that generates interest,” Page said. “And Canadians will be surprised at how fast interest on the public debt is going to grow over the next five years.”
The market debt figure for 2017-18 does not reflect the cash, land or other assets the federal government has on hand.
“When I think of of my Ukrainian mother in Thunder Bay, [Ont.], she understands debt is going up,” he said. “Most Canadians understand that. And it’s going up by a lot.”
Passing the $1 trillion threshold
Buried in the recent federal budget is a passing reference to both the market debt and the limits of the federal government’s ability to borrow.
Officials at Finance say the country’s total “debt stock” will be $1.029 trillion when the fiscal year ends on Saturday.
It will go even higher in the coming fiscal year.
Finance Minister Bill Morneau’s recent fiscal plan noted that “outstanding government and Crown corporation market debt is projected to reach $1,066 billion ($1.066 trillion) in 2018-19.”
The estimate includes $755 billion in “projected year-end government market debt and an anticipated Crown corporation debt stock of approximately $311 billion.”
Page said crossing the $1 trillion threshold is extraordinarily important.
“We’re a $2-trillion economy. So, to have at the federal level more than a trillion dollars of liabilities, most of which is market debt, it’s significant,” he said. – CBC
read full article here