Conservatives: Parliamentary report reveals doubling of financial deficit and deterioration of economic indicators

Ottawa —
The Conservative Party escalated its attack on Prime Minister Mark Carney's government following the release of a new financial report that forecasted a significant increase in the federal deficit over the coming years, coinciding with the slowdown of the Canadian economy and its entry into a technical recession.

The Conservatives said the report paints a worrying picture of public finances, pointing to forecasts of the deficit rising from $36.3 billion in the 2024-2025 fiscal year to about $72 billion during the first full year of Carney's government.

The report also indicated that current deficit estimates are higher than previous forecasts, with ongoing pressures on public finances and increased government spending.

According to the figures provided, government salary and benefit costs are expected to rise significantly over the coming years, while concerns grow over the difficulty of achieving the financial targets set by the government to gradually reduce the deficit.

Projections also indicate an increase in the federal debt-to-GDP ratio over the coming years, at a time when economic growth is slowing and some labor market indicators are weakening.

The Conservatives considered these indicators to reflect the failure of the economic policies of successive Liberal governments, affirming that Canadians are facing increasing pressures due to rising food prices, slowing growth, and the continuation of unemployment rates at relatively high levels.

The party also warned that continued government spending at its current pace could exacerbate financial burdens in the future, at a time when the pace of government revenue growth is declining.

These criticisms come amid escalating political debate over the performance of the Canadian economy, after recording two consecutive quarters of GDP contraction, accompanied by widespread discussions about the future of growth and financial stability in the country.

The Conservatives are calling for a new economic plan focused on stimulating investment, supporting growth, creating jobs, and improving the purchasing power of Canadian families, at a time when the government faces increasing pressure to defend its financial and economic policies.