News Analysis
As the federal government continues to grapple with debt, provinces have been experiencing a similar challenge in recent years, marked by increasing debt in relation to their economic size and deteriorating finances.
The 10 provinces’ combined yearly deficit was on track to nearly triple in one year, rising from an estimated $10.6 billion in the 2023–24 fiscal year, or 0.4 percent of GDP, to the nearly $28 billion projected in 2024–25, or 0.9 percent of GDP, according BMO’s provincial monitor in April 2024. BMO forecast in July that the combined provincial budget deficit was on track to rise to nearly $45 billion in 2025–26, or 1.4 percent of GDP….