Ottawa's watchdog puts the number on it: debt charges now top the health transfer
News · The Canadian Chronicle
Published Sunday, October 25, 2026 · Last updated Sunday, October 25, 2026
The Parliamentary Budget Officer's Economic and Fiscal Outlook, released October 20, says public debt charges are the fastest-growing expense in the federal budget. Debt charges are $59.3 billion in 2026-27, up from $24.5 billion in 2021-22, and are projected to reach $83.0 billion by 2030-31. Per Canadian, that is $640 in 2021-22, $1,419 this year, and a projected $1,952 by 2030-31.
Testifying to a House of Commons committee on October 22, Parliamentary Budget Officer Annette Ryan noted that 2026-27 debt charges of $59.3 billion exceed the Canada Health Transfer of $57.4 billion, and said the government's two fiscal anchors impose very little fiscal discipline. The outlook projects cumulative deficits of $333.3 billion over the next five years while federal borrowing rises by $732.9 billion, with deficits running about $3 billion a year deeper than the PBO projected in June. The federal budget is tabled on November 5. What the record establishes is the size and direction of the interest bill. What it does not establish is any plan from the Carney government to bring it down. (Parliamentary Budget Officer, October 2026)