Interest payments on Canada’s federal debt are expected to reach $69.9 billion by 2029, according to the Parliamentary Budget Office (PBO).
“Public debt charges have increased significantly over the last three years due to a substantial increase in the stock of public debt over the course of the pandemic combined with subsequent higher effective interest rates,” said a PBO report released on June 4.
As originally reported by Blacklock’s Reporter, the PBO said that the 2025–26 Main Estimates showed $49.1 billion in spending on servicing public debt, which is a $0.7 billion increase from the 2024–2025 Estimates. However, the report said the effective interest rate is expected to stabilize after 2025, which will slow the growth in public debt charges….