Hub Podcasts Ottawa is borrowing to pay for the past
Jan 16, 2026
Charles Lammam, an economic policy expert, delves into Canada’s debt issues, revealing that over 70% of new borrowing is servicing old debt. He critiques questionable infrastructure priorities in a hefty $115B plan, stressing the need for transparent fiscal planning. Samuel Goertz, a political science PhD student, discusses Alberta's recall petitions, highlighting their potential to empower voters and enhance democracy, despite anticipated challenges. Both guests present thought-provoking insights on pressing political and economic topics.
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Borrowing To Service Old Debt
- Canada is borrowing heavily to service past debt rather than fund new priorities.
- Over 70% of new operational borrowing goes to public debt charges, creating a fiscal treadmill.
Capital Accounting Masks True Deficit
- The government classifies many expenditures as capital to hide operating deficits.
- The PBO says capital investments are overstated by nearly $100 billion over six years.
Pension Assets Create A Fiscal Mirage
- Net debt ratios are distorted by pension assets that cannot pay government bills.
- On a gross-debt basis Canada's consolidated debt is about 111% of GDP, much higher than portrayed.