Hub Podcasts Canadians will soon pay more interest on national debt than federal funds
Nov 10, 2025
Graham Gordon, Senior Editor at The Hub, discusses troubling projections that Canadians may soon spend more on national debt interest than on vital services like health care and child care. He highlights the risks this poses to fiscal priorities. Meanwhile, Norman Eilfson, a retired creative professional, critiques conservatism's direction, arguing for a fusion of free-market economics and cultural values. He recalls lessons from past conservative leaders and explores the generational shift in ideological focus among young conservatives.
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Interest Payments Threaten Core Programs
- Canada’s federal interest payments are forecast to grow fast and squeeze other spending priorities.
- By 2029 debt interest may exceed combined federal transfers for health care and child care.
Net Debt Masks True Liabilities
- Official net debt figures understate risk by counting CPP and QPP assets as offsetting assets.
- Looking at gross debt shows Canada ranks among the higher indebted G7 members at 113% of GDP.
Debt Service Risks From Rate Surprises
- Interest payments are sensitive to higher-than-expected interest rates and refinancing costs.
- Rising long-term rates and larger deficits could push debt servicing well above forecast.