CCJ Civic Explainer: When the Budget Doesn’t Balance Itself

CCJ Civic Explainer: When the Budget Doesn’t Balance Itself

This is a CCJ Civic Explainer.

Today, we’re examining a political claim Canadians have heard for nearly a decade — and the real-world consequences that followed.

📌THE CLAIM

During the 2015 federal election, Justin Trudeau made a clear promise:

There would be three years of modest deficits,

followed by a balanced budget in 2019 —

including a $1-billion surplus.

He also stated:

“The budget will balance itself.”

📌THE WARNING

At the time, former Prime Minister Stephen Harper issued a warning:

“Mr. Trudeau has made tens of billions of dollars in spending promises.

He has no idea what he is talking about when it comes to these things.

Small deficits will become large deficits —

putting Canada back into a cycle of high taxes and program cuts.”

📌WHAT ACTUALLY HAPPENED

The promised balanced budget in 2019 never arrived.

Instead:

Deficits continued year after year

Federal debt rose to approximately $1.2 trillion

Debt interest costs escalated sharply

Today, the federal government spends:

Nearly $44 billion per year just servicing debt

As much on debt interest as it collects through the GST

As much on debt interest as it transfers to provinces for healthcare

That money does not fund services.

It does not reduce taxes.

It does not improve affordability.

📌INFLATION & PURCHASING POWER

Deficit spending doesn’t exist in isolation.

When governments rely heavily on borrowing:

Inflation increases

Purchasing power declines

Everyday essentials become harder to afford

Canadians feel this at the grocery store, at the pump, and in housing costs.

📌REAL-WORLD IMPACT

A 2025 report from Food Banks Canada highlights the human cost:

Poverty and hunger are becoming normalized

Based on data from 5,500 food banks nationwide

One in five food bank users is employed

That represents a 99% increase since 2019

This is not theoretical.

This is happening while people are working full-time.

📌COMPARISON: DIFFERENT APPROACHES

While the federal government is projected to still be running over $50 billion in annual deficits years from now, other governments are taking different paths.

Ontario, for example, is projecting:

A return to surplus

A plan to balance the budget within two years

Meanwhile, federal debt interest costs are projected to exceed $70 billion annually —

money that produces no services and no direct benefit to Canadians.

📌THE QUESTION CANADIANS SHOULD ASK

If budgets really balanced themselves,

why are Canadians struggling more now than before?

📌WHY THIS MATTERS

Deficits don’t disappear.

Debt doesn’t manage itself.

And budgets do not balance themselves.

When fiscal discipline breaks down:

Canadians pay more

Services are squeezed

Future generations inherit the bill

Fiscal responsibility isn’t ideology — it’s accountability.

Canadians deserve clear answers

and a clear plan.