The Canadian Taxpayers Federation is raising concerns over the rising cost of servicing the federal debt, urging the prime minister to reverse course and cut spending. According to the group, each Canadian will pay approximately $1,400 in federal debt interest charges this year alone.
CTF sounds alarm on debt interest costs
Franco Terrazzano, CTF federal director, stated in a news release that the Parliamentary Budget Officer's report reveals the staggering cost of interest payments. "That's $1,400 that the government is taking from each Canadian that can't be used to hire nurses, fix potholes or lower taxes because the government is wasting that money paying interest on the debt," he said.
PBO report highlights upward trend
The CTF points to the latest PBO report, released Monday, as evidence for its case. The report notes that the interest burden, measured as public debt charges as a share of revenues, is broadly unchanged compared to Budget 2025 but still shows a concerning upward trajectory. It projects that public debt charges will rise from 10.6% to 13.2% of revenues between 2025-26 and 2030-31.
On a per capita basis, public debt charges are expected to climb from $1,409 in 2026-27 to $1,901 in 2030-31, reflecting low population growth and rising debt. Each Canadian's share of the total federal debt will increase from $33,592 this year to $38,295 in 2030.
Call for spending cuts
Terrazzano emphasized that the prime minister needs to "reverse course and put down the credit card." He noted that Ottawa's Spring Economic Update shows debt interest charges will cost taxpayers $58.7 billion this year, surpassing federal health transfers to provinces and GST collections. "Debt interest payments continue to spiral out of control because spending continues to spiral out of control," he added, pointing out that the government is on track to spend $6 billion over budget just six months after releasing its budget.
Government response
In Budget 2025, the federal government argued it would use available fiscal room for long-term economic investments while maintaining a stable debt-to-GDP ratio despite higher deficits. However, the PBO cautioned that debts remain repayable regardless of economic growth objectives and suggested parliamentarians may seek more comprehensive reporting on implementation.
National Post reached out to the Ministry of Finance for comment. John Fragos, press secretary at the ministry, stated in an email that the federal government is committed to the $11 billion deficit reduction set out in the Spring Economic Update.
