Federal and provincial interest costs for Canadians increasing at alarming rate.

[blackbird]

"

Federal and Provincial Debt-Interest Costs for Canadians 2025

The federal and provincial debt-interest costs for Canadians in 2025 are projected to be significant, with the total amount expected to be $92.5 billion. This figure represents the combined interest payments made by the federal and provincial governments. The costs vary by province, with Newfoundland & Labrador having the highest combined federal-provincial interest payments per person at $3,432, followed by Manitoba at $2,868. The federal government is projected to spend $53.8 billion on debt servicing charges in 2024/25, which is more than the expected spending on the Canada Health Transfer and childcare benefits. The interest payments on government debt are substantial and will impact the availability of funds for essential programs and services. 

 

Fraser Institute+4

This tells us that there is no free lunch.  Everything the government spends money on has to be paid for by Canadians.  We are sinking deeper into debt and the interest costs on this debt are staggering, now at 92.5 billion dollars.  That is money that will no longer be available to provide services for Canadians.

 

It is tragic that many if not most voters do not understand what this means.  They heard that the deficit is going up to over 70 billions dollars, but I don't think they really understand what this means or the consequences.  Canada is in serious trouble and the government does not seem to concern itself about getting us out of this mess.  We have ever-increasing public health care costs, and many other public services that are demanding financial support, but there will be less money available for all these things because more money will have to go to pay the interest on the national debt.  It's as simple as that.   The left leaning parties seem to have less understanding or could care less about debt.  They are constantly demanding more money be spent on every conceivable service.

Edited November 5, 2025 by blackbird

[ExFlyer]

You borrow...you pay interest...what new about that?? LOL

All governments, municipal, provincial to federal borrow to please the public with programs they want so, they have to pay the interest on those loans....what's new about that???

[blackbird]

"Overall, Ottawa has now accumulated 1.27-trillion in debt, almost half of it within the last five years. With Tuesday’s deficit forecast for this year, the federal government is now on track to have amassed $593.1-billion in debt over the last five years, or 46.7 per cent of the total debt from throughout Canadian history. More than half of that debt, or $327.7-billion of it, can be traced back to the fiscal year 2020-21 that included the start of the pandemic and the various policies that followed."

With nearly $80B in red ink, Carney racks up largest ever non-pandemic deficit

[blackbird]

3 minutes ago, ExFlyer said:

You borrow...you pay interest...what new about that?? LOL

All governments, municipal, provincial to federal borrow to please the public with programs they want so, they have to pay the interest on those loans....what's new about that???

What's new is Canada is getting into massive debt and will be unable to provide the services Canadians need because so much of the revenue will be going to pay the interest on the debt.  The federal government and provinces are getting in way over their head and I don't think they know what they are doing.  Even the BC NDP government is dragging BC far deeper into record debt.

[SpankyMcFarland]

NL is now one quarter over 65. We lead Canada in that department too. The plan for my generation is to live it up, keel over and leave a massive debt with the youngsters. Hence the vital importance of a new hydro deal with Quebec. Unfortunately, voters in their wisdom have just thrown this into doubt by electing a new government that claims it can get a better one. Let’s hope Mr. Wakeham and his team are brighter than they look. 

[Legato]

27 minutes ago, ExFlyer said:

You borrow...you pay interest...what new about that?? LOL

All governments, municipal, provincial to federal borrow to please the public with programs they want so, they have to pay the interest on those loans....what's new about that???

When the interest payment amount would fund a war on a rebel moon, in perpetuity, it's a rather excessive.

What do you do when then cows come home.

[500channelsurfer]

This is alarming.

But what are the possible solutions? Cut back on programs that Canadians are using now. Raise taxes. Refuse to increase our military spending and risk getting kicked out of NATO. Implement additional pay-per-use policies for government-run services such as tolls on roads, 911 calls and airport fees.

Perhaps some of this spending will result in increased future wealth creation (hopefully sooner rather than later) down the line.

[Goddess]

32 minutes ago, 500channelsurfer said:

Perhaps some of this spending will result in increased future wealth creation (hopefully sooner rather than later) down the line.

The Liberals have proven to be quite bad at gambling on investment.

How many $$billions$$ have we lost on betting on green tech now?  Cricket factories?

All that money went into consultant's pockets - mostly McKinsey.

It's the billions in consultants that makes zero sense to me.  If you don't know how to do the job, then GTFO.

I don't get to tell my boss "Hey, I actually don't know how to do any of this stuff, so you need to hire 2 other people also to do the work you hired me to do.  And also, you have to pay me handsomely and give me exorbitant raises on a regular basis."

 

[ExFlyer]

2 hours ago, blackbird said:

What's new is Canada is getting into massive debt and will be unable to provide the services Canadians need because so much of the revenue will be going to pay the interest on the debt.  The federal government and provinces are getting in way over their head and I don't think they know what they are doing.  Even the BC NDP government is dragging BC far deeper into record debt.

No it is not.

Canada has been in deficit forever.  https://www.fraserinstitute.org/sites/default/files/examining-federal-debt-in-canada-by-prime-ministers-since-confederation-2022.pdf

One of the primary reasons for deficit by all political parties is to provide the services demanded by Canadians.

We do not pay enough taxes to pay for all the programs we want. This is not new. We elect a government (municipal, provincial and federal) that promises to give us the most. To do so, either raise taxes to cover the promises or go into deficit.

1 hour ago, Legato said:

When the interest payment amount would fund a war on a rebel moon, in perpetuity, it's a rather excessive.

What do you do when then cows come home.

OK...increase taxes to cover all the programs and promises all parties make....how about that.

 

 

[ExFlyer]

1 hour ago, Goddess said:

The Liberals have proven to be quite bad at gambling on investment.

How many $$billions$$ have we lost on betting on green tech now?  Cricket factories?

All that money went into consultant's pockets - mostly McKinsey.

It's the billions in consultants that makes zero sense to me.  If you don't know how to do the job, then GTFO.

I don't get to tell my boss "Hey, I actually don't know how to do any of this stuff, so you need to hire 2 other people also to do the work you hired me to do.  And also, you have to pay me handsomely and give me exorbitant raises on a regular basis."

 

The conservatives did no better when they were in power and Canadians saw that...hence 4 straight election loses.

[CdnFox]

1 minute ago, ExFlyer said:

No it is not.

Canada has been in deficit forever.  https://www.fraserinstitute.org/sites/default/files/examining-federal-debt-in-canada-by-prime-ministers-since-confederation-2022.pdf

One of the primary reasons for deficit by all political parties is to provide the services demanded by Canadians.

We do not pay enough taxes to pay for all the programs we want. This is not new. We elect a government (municipal, provincial and federal) that promises to give us the most. To do so, either raise taxes to cover the promises or go into deficit.

Actually we are very frequently into the positives. And when we are into the deficit what you see is that the GDP grows appropriately so our debt to GDP ratio remains the same

That's not happening right now.

Anyone with a quarter of a brain realizes what's happening now ratchet that up.

And we do pay enough taxes to pay for the programs you want generally speaking, And when we don't we wind up with less programs that we want. Over time the interest payments get larger. Until someone comes along and resolves that.

This isn't hard kiddo. If you borrow more money on your credit card every month then you make eventually you go bankrupt.

Now if the amount that you're borrowing happens to also equal the amount that your wages go up you can maintain it for a while but that's not what's happening at the moment

[Legato]

30 minutes ago, ExFlyer said:

OK...increase taxes to cover all the programs and promises all parties make....how about that.

 

 

More taxes? Wimped out.

[CdnFox]

34 minutes ago, ExFlyer said:

The conservatives did no better when they were in power 

The conservatives did much better when they were in power and actually Canadians look back and realize they had a pretty good.

That's why harper pulls so much stronger as best prime minister usually getting the number two spot or even the number one spot whereas Trudeau is always at the very bottom

And if gear had run against Trudeau I think we all know how that would have turned out.

It's not that the liberals are good with the economy they're just better liars. And that can be effective

[herbie]

Yeah let's massively cut services and raise taxes to cut the deficit. That'll really make things better.
NOT....

No one will even DARE to suggest putting the GST back to 7%. No one.

[eyeball]

47 minutes ago, CdnFox said:

This isn't hard kiddo. If you borrow more money on your credit card every month then you make eventually you go bankrupt.

Yabut what eventually happens if you keep loaning out more than you're repaid?

Lenders are addicted enablers that are as culpable as the dragon they're feeding.

And they're still lining up around the block.

 

 

[Legato]

4 minutes ago, eyeball said:

Yabut what eventually happens if you keep loaning out more than you're repaid?

 

 

An asteroid sweeps into the solar system it's galactic name, unsustainability.

An AI list of asteroid destruction.....

Argentina: Experienced a major economic crisis in the early 2000s and has faced repeated debt crises, including in 2020.

Russia: Suffered a financial crisis in 1998 that involved a default on its debt and a devaluation of the ruble.

Iceland: Its banking system collapsed in 2008, leading to a severe recession, and the government had to seek an IMF bailout.

Greece: Faced a severe debt crisis in the 2010s that required a series of international bailouts and austerity measures.

Sri Lanka: In 2022, the government announced a default on its external debt and its economy is said to have collapsed, unable to pay for essential imports.

Venezuela: Has been in an ongoing economic crisis since 2013, with hyperinflation and a default on its debt in 2017.

Mexico: Was at the center of the 1994 peso crisis, which led to a severe recession and required a large international bailout.

Cuba: Experienced an economic collapse in the early 1990s known as the "Special Period" after the collapse of the Soviet Union, its main economic partner.

Zimbabwe: Has had an extremely high inflation rate and a severe economic crisis since the 2000s.

Finland: Experienced a severe banking crisis in the early 1990s that contributed to a recession.

Ecuador: Faced a severe economic crisis between 1998 and 2002. 

[CdnFox]

32 minutes ago, herbie said:

Yeah let's massively cut services and raise taxes to cut the deficit. That'll really make things better.
NOT....

No one will even DARE to suggest putting the GST back to 7%. No one.

Or maybe just don't radically increase spending. The last deficit was 42 billion, now suddenly we're at 80?

You don't have to cut a lot, you just have to not add 40 or 50 billion dollars of new spending

At least keep it reasonable, the conservatives were saying they were willing to live with 42, negotiate and settle at 50. Can I come up with a plan to get to zero within 4 or 5 years

Instead they are spending like drunken sailors and yet know what? They're going to have to do the same thing next year or it'll all collapse on them.

So we won't be seeing reduced budgets anytime soon, and then all of a sudden we'll have borrow too much to be able to get out of it as every year billions more are necessary to service the debt

[eyeball]

10 minutes ago, Legato said:

An asteroid sweeps into the solar system it's galactic name, unsustainability.

An AI list of asteroid destruction.....

And despite all that destruction  lenders are still a dime a dozen.

Speaking of asteroids there's one up there that's worth $10000 quadrillion - there's enough pie in the sky to borrow against to keep humanity going for centuries.

[Legato]

11 minutes ago, eyeball said:

Speaking of asteroids there's one up there that's worth $10000 quadrillion - there's enough pie in the sky to borrow against to keep humanity going for centuries.

You lost your shovel.

[eyeball]

7 minutes ago, Legato said:

You lost your shovel.

That's okay I brought an excavator just in case.

[Legato]

2 minutes ago, eyeball said:

That's okay I brought an excavator just in case.

Ex cavator. What does it do now?

[ExFlyer]

4 hours ago, CdnFox said:

Actually we are very frequently into the positives. .

BS, do some fact checking. 

https://www150.statcan.gc.ca/n1/daily-quotidien/170329/cg-h001-eng.htm

3 hours ago, Legato said:

More taxes? Wimped out.

OK wiseass...how else are you going to pay for programs and services????

The governments are not in business, their only source of income is taxes.

3 hours ago, CdnFox said:

The conservatives did much better when they were in power 

Once again BS

Do some fact checking   

https://www150.statcan.gc.ca/n1/daily-quotidien/170329/cg-h001-eng.htm

[Legato]

2 hours ago, ExFlyer said:

OK wiseass...how else are you going to pay for programs and services????

The governments are not in business, their only source of income is taxes.

 

You really want more taxation pipsqueak.

How about reducing spending....

This before the Carney continued the F'U and just the tip of the iceberg.

What programs and services from the list below do you want to continue.

• Gender Politics in Peruvian Rock Music ($20,000)
• Cart-ography: Tracking the life cycle of urban grocery carts ($105,000)
• My Paw in Yours: Dead Pets and Species Transcendence in Experimental Art-Making ($17,500)
• Playing for Pleasure: Sexual and Erotic Video Games ($50,000)
• An $8-million barn at Rideau Hall.
• $12,500 on live senior citizen sex story shows.
• $8,800 for a sex toy exhibition in Germany.
• Millions wasted on government podcasts that no one listens to.
• $340,000 in bonuses for executives managing the ArriveCAN debacle.
• $102 million in bonuses from the Canada Mortgage and Housing Corporation during a housing crisis.
• $20 million in bonuses at the Bank of Canada in 2022, as inflation hit a 40-year high.
• $132 million in bonuses at the CBC since 2015.
• CBC: Costs taxpayers more than $1 billion annually.
• Canada Post: Lost $1.2 billion over the last two years and predicts larger, unsustainable losses in the future.
• VIA Rail: Burned through $1.8 billion in taxpayer money over five years just to cover operating losses.

[eyeball]

13 minutes ago, Legato said:

What programs and services from the list below do you want to continue.

Pretty much your whole list speaking for myself.

Except funding for the CBC. I'd keep that and yes the Post Office needs to get its shit together.

[CdnFox]

2 hours ago, ExFlyer said:

BS, do some fact checking. 

https://www150.statcan.gc.ca/n1/daily-quotidien/170329/cg-h001-eng.htm

Are you stupid? That's NET DEBT. per capita! That's got NOTHING to do with deficits 

Godddamit, how are you this dumb? 

Ok  here's our deficit/suplus numbers you twat. 

Federal deficits in Canada: another view | Fraser Institute

 

As you can see we ran surplusses from the late 80's to the great recession in 09, then we were back to surplus by2014-2015

before that we only ran massive deficits during the Trudeau years and trying to pay off of the interest and clean up the mess for the first part of the 1980s. Before that we basically had balanced budgets

If you would read books instead of eating them you wouldn't be so daft. Net Debt per GDP has absolutely nothing to do with our deficit

Quote

OK wiseass...how else are you going to pay for programs and services???

By spending within your meansincreasing business opportunities and activities So that you generate more tax revenue by increasing the amount of average income as well as the number of businesses. Couple that with reasonable program spending and not funding lesbian dance theory in Algeria and you got it made

It's not that hard

Quote

The governments are not in business, their only source of income is taxes.

Government policy creates environment for business or squashes it. The governments have a huge control over how much business is happening. More business means more tax revenue. Again, not complicated

Quote

 

Once again BS

Do some fact checking   

https://www150.statcan.gc.ca/n1/daily-quotidien/170329/cg-h001-eng.htm

 

And once again, we are not talking about Net debt per capita. I doubt you even know what net debt is, you're probably scrambling right now to look it up

Plus your chart only goes to 1967, so it doesn't even get to the point where the conservatives were in power. Conservative Party of Canada didn't even exist prior to 2002

I must say it's impressive that you found so many ways to be stupid in one post