Ottawa will be paying lenders $80B to service debt by 2030
“The debt service charges, as a share of every available dollar rising over a five-year period from essentially $10.6 on the dollar, up to 13.1%, by 2030/31,” says PBO Annette Ryan.
Federal debt interest is on track to eat up a growing share of Ottawa’s revenues, with the Parliamentary Budget Officer warning it will climb to $80 billion by the end of the decade, money that won’t go to programs, services, or tax relief but to lenders.
At a Common committee on Tuesday, PBO Annette Ryan told MPs the federal government’s debt servicing burden is rising steadily, moving from about 10.6 per cent of revenues to 13.1 per cent by 2030-31.
“The debt service charges, as a share of every available dollar rising over a five-year period from essentially $10.6 on the dollar, up to 13.1%, by 2030/31,” PBO Annette Ryan told the Standing Committee on Government Operations and Estimates.
“From a per capita basis, that rises from roughly $1,300 to almost $1,900,” she added.
