Why Trudeau Will Have a Hard Time Financing His Election Agenda
- Canada’s interest burden set to rise for first time since 1995
- That gives PM little room to maneuver ahead of 2019 campaign
This article is for subscribers only.
Prime Minister Justin Trudeau’s low-key budget Tuesday will mark a major inflection point for Canada as the federal government’s interest burden rises for the first time in two decades.
After hitting what’s likely an all-time low last year, the cost of covering public debt as a share of gross domestic product will probably tick up in 2018 -- something that hasn’t happened since 1995. Governments relied heavily over the past 15 years on falling public debt charges to finance budget initiatives, meaning the end of the trend will leave Trudeau with fewer options as he eyes an election next year.