Why a ‘better than expected’ federal budget deficit isn’t good enough

Jack Mintz, well-known economist and president’s fellow at the University of Calgary’s School of Public Policy, says that while the federal government’s updated deficit may be “better than expected,” Canada is still running large, persistent deficits with a rising debt-to-GDP ratio and no credible path back to balance. He argues the bigger issue is the absence of clear fiscal anchors, warning the country risks drifting back toward the fiscal patterns of the 1970s and ’80s if spending isn’t constrained. On the new sovereign wealth fund, Mintz highlights key differences from international models, suggesting it more closely resembles a government-directed investment vehicle—with the risk of becoming a politicized “slush fund.” 

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