Persistent Fiscal Expansion Underscores Canada Rating Pressures

border_humper

border_humper

Staff Member
Moderator
Chief Disinfo Officer

Fitch Ratings-New York/London-06 November 2025: Canada’s (AA+/Stable) proposed budget, announced in Parliament on Nov. 4, underscores the erosion of the federal government’s finances, says Fitch Ratings. While Canada’s rating is broadly stable, persistent fiscal expansion and a rising debt burden have weakened its credit profile and could increase rating pressure over the medium term. This may be exacerbated by persistent economic underperformance caused by tariff risks and structural challenges, including low productivity.

Budget 2025 substantially increases capital expenditure while moderating growth in operating expenditures and delivering modest savings. Coinciding with a weak economy, the budget expands the forecast federal deficit to CAD78.3 billion (2.5% of GDP) for the fiscal year ended March 2026 (FY 25-26), up from our prior estimate of CAD70.4 billion (2.1%).

These translate into a general government deficit of 3.3% of GDP, which is higher than the ‘AA’ median of 2.3% and substantially higher than Canada’s pre-pandemic deficits which averaged 0.4% in the two decades prior to 2019. We expect the general government deficit to improve to 2.2% by 2027, assuming a partially successful execution of the government’s planned reduction in program expenses.
Click to expand...
oof
 
Upvote 5
We expect the general government deficit to improve to 2.2% by 2027, assuming a partially successful execution of the government’s planned reduction in program expenses.
Click to expand...

Pigs will fly before this happens. (unless the government collapses)
 
Budget 2025 projects $2.5T in new spending over the next 5 years, or $100K per taxpayer. Today, Carney Balarny said the ROI on all this money is $3,000 per Canadian. What kind of retard would place over over $100K at extremely high risk (obvious based on the past 10 years of fraudulent performance) for a 3% return over 5 years?

Alberta cannot separate from Canada fast enough!!
 
You must log in or register to reply here.
Back
Top