By MorinvilleNews.com Staff
A recent report from the Canadian Federation of Independent Business (CFIB) reveals that nearly three in four small businesses are deeply concerned about Canada’s ongoing deficit and lack of a federal budget-balancing strategy. The national debt has almost doubled in a decade, rising from $602.4 billion in 2012/2013 to $1.173 trillion in 2022/2023, prompting fears about the economic impact on business sustainability.
CFIB’s Vice-President of National Affairs, Jasmin Guenette, called on Ottawa to introduce a clear budget-balancing timeline. “Our economy and our entrepreneurs cannot sustain this level of debt forever. Too much money is spent to manage our debt. That’s money that could instead be used to reduce taxes and the cost of doing business,” she said. “Ottawa needs to stop acting as if it has money to burn and, instead, work to avoid driving up the national debt.” otherwise reduce taxes and lower the cost of doing business.”
Federal debt charges now consume nearly all of Canada’s annual goods and services tax (GST) revenue, amounting to $54 billion—a sum comparable to the combined provincial budgets of Manitoba, Saskatchewan, and Newfoundland and Labrador for 2024/2025. Debt costs are projected to reach $64.3 billion by 2028/2029, a figure equivalent to what could have eliminated various taxes nationwide.
CFIB outlined specific recommendations, including establishing a fiscal anchor, legislated spending limits outside of crisis periods, freezing current operating budgets, and considering government asset sales. Juliette Nicolaÿ, CFIB policy analyst and co-author of the report, stressed the need for fiscal reform, warning that “today’s deficits result in tomorrow’s higher taxes, deterring future and current entrepreneurs alike.”
The CFIB urges action in the forthcoming Fall Economic Statement and 2025 Budget to curb spending and support long-term economic health.
For the full report, visit CFIB’s website.
