B.C. Minister of Finance Brenda Bailey tables her first budget in the legislative assembly in Victoria in March, 2025.CHAD HIPOLITO/The Canadian Press
For many, what I’m about to say will come as a shock: once upon a time, governments in Canada believed in fiscal competency.
And fiscal competency meant that you didn’t spend more than you took in. It was sometimes known as fiscal conservatism – the idea being that it was a government’s duty to balance the books, so as to not burden future generations with debt that wasn’t of their doing. And certainly, if a government did declare a deficit, there would be a promise that it would be short-lived.
Those are now known as the good old days.
What is unfolding in Canada right now is fiscal lunacy. Governments from coast to coast have lost any sense of spending within their means. Even governments bringing in a record amount of revenue are racking up massive deficits, which they say they have no choice but to do.
This year it started with B.C. In its February budget, the NDP government of Premier David Eby declared a $13.3-billion shortfall for 2026-27. Mr. Eby was left with an almost $6-billion surplus by his predecessor John Horgan four years ago. The current NDP Premier has done nothing but declare deficits ever since.
The NDP has increased spending by 39 per cent since Mr. Horgan left office, while revenues have grown only 18 per cent. The Eby government has compiled deficits totalling more than $35-billion, and taxpayer-supported debt is expected to rise from $116.5-billion in 2025-26 to $189-billion by 2028-29.
This is madness.
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If B.C. were a company, and Mr. Eby its CEO, he’d be fired by now. Every British Columbian should be outraged by the brutal legacy of debt with which their government is burdening future generations.
Next door in Alberta, things are almost as egregious. In its recent budget, Finance Minister Nate Horner said the government is projecting a $9.4-billion deficit this fiscal year after racking up a $4.1-billion deficit in 2025-26. The deficit being forecast for 2027-28 is $7.6-billion, and for the following year, $6.9-billion. This string of deficits would violate the government’s own legislation, which prohibits running deficits for more than three consecutive years.
If only we all could break laws as easily, and without consequences, as governments do.
Instead of making deep cuts to rein in spending, Alberta Premier Danielle Smith is imposing tax increases by stealth. Calgary Mayor Jeromy Farkas said last week that the United Conservative Party government is increasing its share of the city’s property tax bill by a whopping 21.05 per cent. Now, nearly 42 cents of every residential property tax dollar will go to the province.
And somehow this is what Ms. Smith thinks is good, sensible policy. It’s the opposite.
Saskatchewan Premier Scott Moe said last week his government will declare a deficit in its upcoming budget. Nova Scotia projected a $1.2-billion deficit. There is unlikely to be a province in the country that won’t be running into the red.
Meanwhile, Prime Minister Mark Carney’s government posted a massive budget deficit last November. When combining operating and capital expenditures against revenue, this fiscal year’s shortfall will be just over $78-billion, according to the Fraser Institute. And there are more deficits to come.
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This, of course, follows a decade of profligate spending by Mr. Carney’s predecessor, Justin Trudeau. When he became Prime Minister, total debt was $616-billion. By the time he left office, it was about double that amount. The interest charges on the federal debt in 2025 was $53.7-billion – or more than $1-billion a week.
When ordinary folks run their household finances like this, they are eventually forced to declare bankruptcy. But governments look around, see others in even worse shape than they are, and feel they’ve got room to go even further in arrears.
Instead of getting their fiscal houses in order during the good times, such as they are, governments in Canada run deficits. And then when something really bad happens – like a 2008 financial crisis, pandemic or a U.S. tariff attack – they have to go into hock even further to prop up their economies.
Most Canadians think this is completely irresponsible. Yet, many of us are the loudest to scream when governments make cuts to try and get revenues and expenses to add up. We want governments to be financially responsible – but not at our expense.
Fact is, we don’t have politicians who are prepared to make tough choices any more – who are prepared to give people the straight goods. It’s far easier to spend beyond their means and let someone else deal with the inevitable financial crisis when it hits.
Because we all know that it will hit. It’s not a question of if, but when.