In virtue of the 2017 Borrowing Authority Act, the current debt ceiling stood at $1.168 trillion. Freeland is seeking to increase it to $1.831 trillion, a $663 billion increase.
“Your government blew through its previous debt ceiling within a couple of years. Now you’re suggesting, ‘Yes, but if you give me $663 billion, don’t worry, I won’t blow through that line of credit.’ Why should Canadians trust you with that?”, Conservative MP Ed Fast told Freeland.
“It dramatically increases Canada’s debt ceiling without any oversight or accountability. You’re simply saying, ‘Give me a blank cheque and then trust me.’ We just cannot do that”, Fast added.
Canada’s last budget dates back to March 19, 2019, for the 2019 Budget. Canada is currently the only country in the G7 that has not tabled a budget for the year 2020.
Despite the unprecedented debt spending by the Trudeau government, Canada’s economy shrank 5.4% last year, the largest annual decline since WWII and the third consecutive year of underperformance when compared to the United States.
According to Bloomberg, total public and private debt rose by a staggering 50 percentage points to reach 353% of GDP at the end of the third quarter of 2020, a deeply worrisome figure.