Canada’s Budget Watchdog Sees Rising Debt-to-GDP Ratio (1)

Canada’s federal fiscal picture is set to worsen as deficits and debt rise as a percentage of the economy, according to the latest forecasts from the country’s budgetary watchdog.

The parliamentary budget officer says Prime Minister Mark Carney’s government will run a C$68.5 billion ($49.2 billion) deficit this fiscal year, up from about C$52 billion in 2024-25.

That’s roughly in line with expectations in a Bloomberg survey of economists earlier this month, and reflects “weaker economic growth and additional measures impacting both revenues and expenses,” the PBO said in the report Thursday.

Carney has pledged billions in expenditures ...