Canada’s Upsetting Debt

Canada Federal Government Debt Rises
Canada Federal Government Debt Rises

CEIC Macro Watch: Canada’s accumulated Federal deficits remain higher than its pre-crisis level despite the government’s attempt to lower it. While the accumulated deficit has been on a gradual decline since 1998, it has since risen sharply during 2010 with an 11.94% year-on-year increase. The accumulated deficit has since surged to CAD 582.2 billion during the fiscal year ended March 2012, a CAD 31.8 billion increase from the previous fiscal year. Gross debt – i.e. the total liabilities of the government – stood at CAD 974.7 billion (about 55 per cent of gross domestic product), due to the rise in public debt charges and budget programme expenses. However, the accumulated deficit-to-GDP ratio has declined marginally from 33.9% in FY 2011 to 33.8% in FY 2012 – at its peak, in FY 1996, Canada saw the ratio rise to 68.4%. While having one of the lowest debt-to-GDP ratios among developed countries, uncertainties in the economy may prompt further fiscal stimulus efforts by the government. As such, it is doubtful that the accumulated deficit will decline in the near future. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. By Catherine Joy Rumbines in Philippines - CEIC Analyst Back to Blog

5th June 2013 Canada’s Upsetting Debt

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