Question

What was Canada’s deficit and total debt as of last month? What conclusions can you make about the federal debt/deficit?

Answer 1

The Canadian National Debt expected to rise to 49% from 31% in 2020-21.

The Canada's Debts is very high because the National Deficit is increasing overtime and results into the higher paid interest rates of debts of the country and it also reduces the tax revenues of the country which are to be spended for government services to public but because of high debt of country, so the government spends more of his tax revenues on paying high interest rates on the national debt. The Increasing Debts and Deficit over Assets makes stress among the country and gives negative impact on the economic growth.

The Conclusion is that the Debt and Deficit of Canada is Increasing and this leads to the payment of higher rates of interest and reduces the smooth running of economy of Canada. Moreover, the country may overcome by raising taxes rates and Rise in Institution of Spending.