Canada's Fiscal Position

With the Canadian elections approaching, the government's handling of its fiscal position appears to be a critical issue. Canada's fiscal deficit has experienced significant fluctuations from 2004 to 2024, influenced by major events such as the 2008 financial crisis, the COVID-19 pandemic, and the Russia-Ukraine war. The deficit in 2024 is notably impacted by court settlements for First Nations Child & Family Services and the Robinson Huron Treaty. These have in turn led to significant increase in its debt position particularly during the 2008 financial crisis and the COVID-19 pandemic. The debt-to-GDP ratio peaked at 74.6% during the pandemic and remains relatively high. Voters will likely scrutinize how these economic challenges have been managed and what plans are in place to ensure fiscal stability moving forward.