National Post: University of Calgary economist Trevor Tombe writes in a new study for the Montreal Economic Institute that, if current fiscal policy holds, the baseline federal deficit will grow to $117 billion by 2035.
The 2025-26 federal budget, tabled in November, projected a $78.3-billion deficit, the largest in Canadian history outside of the COVID-19 pandemic.
Tombe and collaborator Gabriel Giguère forecast that Canada’s new international commitments to boost military spending will exert the most pressure on federal finances…