To get a sense of how big that is, it’s equivalent to some US budget deficits in the mid 2000’s.
In 2006, the United States was still mired in the Iraq War. Worries about the ongoing budget deficit and surging debt was rising.
The deficit hit $248 Billion, a number which was seen as still far too big at the time.
That can give you a sense of how shocking it is to see the Parliamentary Budget Officer predicting a budget deficit of $256 BILLION for Canada, over a quarter of a TRILLION dollars.
Our deficit is now hitting a level that was once seen as huge for an economy far larger than ours.
Of course, the US is headed for a gigantic budget deficit as well, likely to reach about 2 TRILLION or more.
These deficit woes are hitting tons of countries, not just Canada.
What will matter most is how Canada recovers, because economic growth will be the only way we can really manage the large expansion in Canada’s debt.
That’s why the carbon tax and anti-energy industry policies of the Liberal government are so dangerous, because they could cripple our long-term recovery, and make the debt burden far worse.