Business
Canada Is Still Paying The Price For Trudeau’s Fiscal Delusions
From the Frontier Centre for Public Policy
By Lee Harding
Trudeau’s reckless spending has left Canadians with record debt, poorer services and no path back to a balanced budget.
It’s time for Canada to break free from Trudeau’s big-spending legacy. With soaring deficits, mounting debt, and stalled growth, we need a budget that cuts red tape, flattens taxes, and puts the economy first.
Justin Trudeau may be gone, but the economic consequences of his fiscal approach, chronic deficits, rising debt costs and stagnating growth, are still weighing heavily on Canada.
Before becoming prime minister, Justin Trudeau famously said, “The budget will balance itself.” He argued that if expenditures stayed the same, economic growth would drive higher tax revenues and eventually outpace spending. Voila–balance!
But while the theory may have been sound, Trudeau had no real intention of pursuing a balanced budget. In 2015, he campaigned on intentionally overspending and borrowing to build infrastructure, arguing that low interest rates made it the right time to run deficits.
This argument, weak in its concept, proved even more flawed in practice. Post-pandemic deficits have been horrendous, far exceeding the modest overspending initially promised. The budgetary deficit was $327.7 billion in 2020–21, $90.3 billion the year following, and between $35.3 billion and $61.9 billion in the years since.
Those formerly historically low interest rates are also gone now, partly because the federal government has spent so much. The original excuse for deficits has vanished, but the red ink and Canada’s infrastructure deficit remain.
For two decades, interest payments on federal debt steadily declined, falling from 24.6 per cent of government revenues in 1999–2000 to just 5.9 per cent in 2021–22, thanks largely to falling interest rates and prior fiscal restraint. But that trend has reversed. By 2023–24, payments surged past 10 per cent for the first time in over a decade, as rising interest rates collided with record federal debt built up under Trudeau.
Rising debt costs are only part of the story. Federal revenues aren’t what they could have been because Canada’s economy has stagnated. Population growth pads our overall GDP growth stats, but masks our productivity problem. From 2014 to 2022, Canada had near-lowest GDP growth among 30 countries in the Organization for Economic Co-operation and Development. Canada’s average growth rate during that period (0.6 per cent) was only ahead of Luxembourg (0.5 per cent) and Mexico (0.4 per cent).Why should a country like Canada, so blessed with natural resources and know-how, do so poorly? Capital investment has fled because our government has made onerous regulations, especially hindering our energy industry. In theory, there’s now a remedy. Thanks to new legislation, the Carney government can extend its magic sceptre to those who align with its agenda to fast-track major projects and bypass the labyrinth it created. But unless you’re onside, the red tape still strangles you.
But as the private sector withers under red tape, Ottawa’s civil service keeps ballooning. Some trimming has begun, rattling public sector unions. Still, Canada will be left with at least five times as many federal tax employees per capita as the U.S.
Canada also needs to ease its hell-bent pursuit of net-zero carbon emissions. Hydrocarbons still power the Canadian economy, from vehicles to home heating, and aren’t practically replaceable. Canada has already demonstrated that pursuing net-zero targets can result in near-zero per capita growth. Despite high immigration, the OECD projects Canada to have the lowest overall GDP growth from 2030 to 2060.
The Nov. 4 release of the federal budget is better late than never. So would be a plan to grow the economy, slash red tape and eliminate the deficit. But we’re unlikely to get one.
Lee Harding is a research fellow with the Frontier Centre for Public Policy.
Business
Some Of The Wackiest Things Featured In Rand Paul’s New Report Alleging $1,639,135,969,608 In Gov’t Waste

From the Daily Caller News Foundation
Republican Kentucky Sen. Rand Paul released the latest edition of his annual “Festivus” report Tuesday detailing over $1 trillion in alleged wasteful spending in the U.S. government throughout 2025.
The newly released report found an estimated $1,639,135,969,608 total in government waste over the past year. Paul, a prominent fiscal hawk who serves as the chairman of the Senate Homeland Security and Governmental Affairs Committee, said in a statement that “no matter how much taxpayer money Washington burns through, politicians can’t help but demand more.”
“Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different,” Paul continued. “So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.”
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The 2025 “Festivus” report highlighted a spate of instances of wasteful spending from the federal government, including the Department of Health and Human Services (HHS) spent $1.5 million on an “innovative multilevel strategy” to reduce drug use in “Latinx” communities through celebrity influencer campaigns, and also dished out $1.9 million on a “hybrid mobile phone family intervention” aiming to reduce childhood obesity among Latino families living in Los Angeles County.
The report also mentions that HHS spent more than $40 million on influencers to promote getting vaccinated against COVID-19 for racial and ethnic minority groups.
The State Department doled out $244,252 to Stand for Peace in Islamabad to produce a television cartoon series that teaches children in Pakistan how to combat climate change and also spent $1.5 million to promote American films, television shows and video games abroad, according to the report.
The Department of Veterans Affairs (VA) spent more than $1,079,360 teaching teenage ferrets to binge drink alcohol this year, according to Paul’s report.
The report found that the National Science Foundation (NSF) shelled out $497,200 on a “Video Game Challenge” for kids. The NSF and other federal agencies also paid $14,643,280 to make monkeys play a video game in the style of the “Price Is Right,” the report states.
Paul’s 2024 “Festivus” report similarly featured several instances of wasteful federal government spending, such as a Las Vegas pickleball complex and a cabaret show on ice.
The Trump administration has been attempting to uproot wasteful government spending and reduce the federal workforce this year. The administration’s cuts have shrunk the federal workforce to the smallest level in more than a decade, according to recent economic data.
Festivus is a humorous holiday observed annually on Dec. 23, dating back to a popular 1997 episode of the sitcom “Seinfeld.” Observance of the holiday notably includes an “airing of grievances,” per the “Seinfeld” episode of its origin.
Alberta
A Christmas wish list for health-care reform
From the Fraser Institute
By Nadeem Esmail and Mackenzie Moir
It’s an exciting time in Canadian health-care policy. But even the slew of new reforms in Alberta only go part of the way to using all the policy tools employed by high performing universal health-care systems.
For 2026, for the sake of Canadian patients, let’s hope Alberta stays the path on changes to how hospitals are paid and allowing some private purchases of health care, and that other provinces start to catch up.
While Alberta’s new reforms were welcome news this year, it’s clear Canada’s health-care system continued to struggle. Canadians were reminded by our annual comparison of health care systems that they pay for one of the developed world’s most expensive universal health-care systems, yet have some of the fewest physicians and hospital beds, while waiting in some of the longest queues.
And speaking of queues, wait times across Canada for non-emergency care reached the second-highest level ever measured at 28.6 weeks from general practitioner referral to actual treatment. That’s more than triple the wait of the early 1990s despite decades of government promises and spending commitments. Other work found that at least 23,746 patients died while waiting for care, and nearly 1.3 million Canadians left our overcrowded emergency rooms without being treated.
At least one province has shown a genuine willingness to do something about these problems.
The Smith government in Alberta announced early in the year that it would move towards paying hospitals per-patient treated as opposed to a fixed annual budget, a policy approach that Quebec has been working on for years. Albertans will also soon be able purchase, at least in a limited way, some diagnostic and surgical services for themselves, which is again already possible in Quebec. Alberta has also gone a step further by allowing physicians to work in both public and private settings.
While controversial in Canada, these approaches simply mirror what is being done in all of the developed world’s top-performing universal health-care systems. Australia, the Netherlands, Germany and Switzerland all pay their hospitals per patient treated, and allow patients the opportunity to purchase care privately if they wish. They all also have better and faster universally accessible health care than Canada’s provinces provide, while spending a little more (Switzerland) or less (Australia, Germany, the Netherlands) than we do.
While these reforms are clearly a step in the right direction, there’s more to be done.
Even if we include Alberta’s reforms, these countries still do some very important things differently.
Critically, all of these countries expect patients to pay a small amount for their universally accessible services. The reasoning is straightforward: we all spend our own money more carefully than we spend someone else’s, and patients will make more informed decisions about when and where it’s best to access the health-care system when they have to pay a little out of pocket.
The evidence around this policy is clear—with appropriate safeguards to protect the very ill and exemptions for lower-income and other vulnerable populations, the demand for outpatient healthcare services falls, reducing delays and freeing up resources for others.
Charging patients even small amounts for care would of course violate the Canada Health Act, but it would also emulate the approach of 100 per cent of the developed world’s top-performing health-care systems. In this case, violating outdated federal policy means better universal health care for Canadians.
These top-performing countries also see the private sector and innovative entrepreneurs as partners in delivering universal health care. A relationship that is far different from the limited individual contracts some provinces have with private clinics and surgical centres to provide care in Canada. In these other countries, even full-service hospitals are operated by private providers. Importantly, partnering with innovative private providers, even hospitals, to deliver universal health care does not violate the Canada Health Act.
So, while Alberta has made strides this past year moving towards the well-established higher performance policy approach followed elsewhere, the Smith government remains at least a couple steps short of truly adopting a more Australian or European approach for health care. And other provinces have yet to even get to where Alberta will soon be.
Let’s hope in 2026 that Alberta keeps moving towards a truly world class universal health-care experience for patients, and that the other provinces catch up.
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