Subhead:Parliament has failed to balance a budget since 2007, when Stephen Harper was prime minister.#
The national debt ceiling will be raised for the third time in four years, increasing the borrowing limit by 20% to an unprecedented $2.54 trillion, according to a Department of Finance budget notice.
The Borrowing Authority Act limit is proposed for amendment in the budget document Canada Strong to support the Government of Canada’s initiatives for building a new Canadian economy and defending Canada. This represents a $1.373 trillion increase in the debt ceiling since 2021.
Finance Minister François-Philippe Champagne differentiated additional debt from spending, stating, “There is a difference between spending and investing,” he told the Commons.
Champagne told MPs that Budget 2025 demonstrates the importance of their choices, emphasizing investment and advancement during difficult times.
The 2025/26 Liberal budget, branded as “fiscal strength” despite record deficits, adds a $78 billion deficit, $10 billion more than predicted by the Parliamentary Budget Office. That is a record, notwithstanding the 2020 pandemic year.
Cabinet proposed $321.7 billion in new borrowing by 2030. Opposition Leader Pierre Poilievre criticized this, stating federal spending increases national debt by $10 million hourly, calling the government “the most expensive in Canadian history” and noting that all government spending is paid by Canadians.
Parliament hasn’t balanced a budget since 2007, as reported by Blacklock’s. The debt ceiling rose from $1.168 trillion in 2020 to $1.83 trillion in 2021.
