OTTAWA — One of Canada’s leading economists is warning that the country’s already historic federal deficit is on pace to top $100 billion in the next decade. University of Calgary economist Trevor Tombe writes in a new study for the Montreal Economic Institute that, if current fiscal policy holds, the baseline federal deficit will grow to $117 billion by 2035. The 2025-26 federal budget, tabled in November, projected a $78.3-billion deficit, the largest in Canadian history outside of the COVID-19 pandemic. “Together, these pressures will cause overall federal spending to grow faster than revenues in the years ahead unless policy adjustments are made,” writes Tombe. Advertisement AdvertisementAdvertisement AdvertisementThe federal government has run a budget deficit in each of the past 18 years since the 2008-09 global financial crisis.

Source: National Post April 08, 2026 08:26 UTC