Business
The Strange Case of the Disappearing Public Accounts Report

A few days ago, Public Services and Procurement Canada tabled their audited consolidated financial statements of the Government of Canada for 2024. This is the official and complete report on the state of government finances. When I say “complete”, I mean the report’s half million words stretch across three volumes and total more than 1,300 pages.
Together, these volumes provide the most comprehensive and authoritative view of the federal government’s financial management and accountability for the fiscal year ending March 31, 2024. The tragedy is that no one has the time and energy needed to read and properly understand all that data. But the report identifies problems serious enough to deserve the attention of all Canadians – and especially policy makers.
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Following the approach of my Parliamentary Briefings series, I uploaded all three volumes of the report to my AI research assistant and asked for its thoughts. Each one of the observations that came out the other end is significant and, in calmer and more rational times, could easily have driven a week’s worth of news coverage. But given the craziness of the past few weeks and months, they’re being largely ignored.
With that in mind, I’ve made this special edition of the Parliamentary Briefings series fully accessible to all subscribers.
We begin with a summary of the purpose and scope of the three uploaded volumes of the Public Accounts of Canada for 2023–2024:
Volume I: Summary Report and Consolidated Financial Statements
- Purpose: Provides a high-level overview of the federal government’s financial performance, presenting the consolidated financial statements audited by the Auditor General. It serves as the primary accountability report.
- Scope:
- Audited financial statements.
- Analysis of revenues, expenses, and the accumulated deficit.
- Overview of assets, liabilities, and financial position.
- Discussion of economic context, risks, uncertainties, and ten-year comparative financial data.
Volume II: Details of Expenses and Revenues
- Purpose: Presents the financial operations of the government, broken down by ministries and agencies, for detailed accountability.
- Scope:
- Financial transactions segregated by ministry.
- Details of appropriations, revenues, and transfer payments.
- Summary tables on ministerial expenditures by type, object, and other dimensions.
- Appendices providing additional details on budgetary authorities and their sources.
Volume III: Additional Information and Analyses
- Purpose: Offers supplementary analyses and financial data beyond what is included in the first two volumes, focusing on revolving funds, professional services, and shared-cost programs.
- Scope:
- Financial statements of revolving funds (e.g., Passport Canada, Canadian Grain Commission).
- Expenditure details on acquisitions, transfer payments, and public debt charges.
- Analyses of federal-provincial shared-cost programs and claims against the Crown.
- Miscellaneous financial and operational data for broader transparency.
The Audit: Based on these documents, could you identify the most serious threats to Canada’s economic stability?
From the Public Accounts of Canada 2023–2024, several serious threats to Canada’s economic security can be identified. These threats emerge from the broader fiscal and economic analyses, contingent liabilities, and uncertainties highlighted in the documents.
1. Growing Public Debt and Debt Servicing Costs
- Observation: Canada’s public debt charges increased significantly in 2024, rising by 35.2% year-over-year, largely due to higher interest rates on debt. The total accumulated federal debt stood at $1.24 trillion, representing 42.1% of GDP, up from 41.1% the previous year.
- Risk: Rising debt servicing costs reduce fiscal space for critical public investments, making the economy vulnerable to future economic shocks or downturns.
2. Contingent Liabilities and Indigenous Claims
- Observation: The government recorded $16.4 billion in contingent liabilities related to Indigenous claims in 2024, reflecting ongoing efforts to address past injustices. These liabilities have been increasing at an average annual growth rate of 30% since 2016.
- Risk: The unpredictable nature and scale of these liabilities could create significant financial pressures if settlements or court decisions require substantial payouts.
3. Legacy Costs from the COVID-19 Pandemic
- Observation: The government recorded $4.7 billion in pandemic-related expenses for 2024, including write-offs for expired vaccines and provisions for unrecovered loans and benefits.
- Risk: These costs highlight vulnerabilities in emergency financial planning and expose the government to further financial risks if similar large-scale public health crises occur.
4. Economic Pressures from High Inflation and Interest Rates
- Observation: Inflation returned to the Bank of Canada’s 2% target by mid-2024 after 41 consecutive months above this threshold. However, elevated interest rates (peaking at 5%) contributed to a softening economy.
- Risk: Prolonged periods of high interest rates could suppress household and business spending, slowing economic growth and increasing the likelihood of a recession.
5. Climate Change and Environmental Commitments
- Observation: Significant spending is allocated to addressing climate change, with over $1 billion dedicated to environmental programs in 2024, including pollution pricing proceeds and clean energy initiatives.
- Risk: Canada’s reliance on resource-intensive industries and increasing costs to meet climate targets create economic vulnerabilities, particularly in regions heavily reliant on fossil fuels.
6. Global Economic Instability
- Observation: Global supply chain disruptions, energy price volatility, and geopolitical events (e.g., Russia’s invasion of Ukraine) significantly impacted Canada’s economy, with slower GDP growth (1.5% in 2023) and reduced trade.
- Risk: External shocks could exacerbate domestic economic challenges, such as rising import costs or reduced demand for Canadian exports.
7. Labor Market and Productivity Challenges
- Observation: While job creation remained positive, population growth outpaced employment gains, leading to an increase in the unemployment rate to 6.5% by October 2024. Productivity improvements have been uneven.
- Risk: Labor shortages in key sectors and declining workforce participation among certain demographics (e.g., aging population) could undermine economic resilience.
8. Dependence on Resource Revenues
- Observation: Volatile global commodity prices impacted nominal GDP growth, with gains slowing to 2.9% in 2023 after double-digit growth in prior years.
- Risk: Fluctuations in resource revenues leave Canada exposed to external shocks, particularly in provinces like Alberta and Saskatchewan, heavily reliant on oil and gas.
These challenges underscore the need for proactive fiscal and policy measures to safeguard economic stability, manage liabilities, and address emerging risks.
The Audit: What would you recommend as the three most urgent areas to address to avoid deepening the economic crisis?
1. Manage Rising Public Debt and Debt Servicing Costs
- Why It’s Urgent: The rapid increase in public debt charges (35.2% in 2024) is crowding out fiscal space for essential programs. The federal debt, at 42.1% of GDP, has become a significant liability, with interest rate fluctuations posing an ongoing threat.
- Recommendations:
- Introduce stricter fiscal discipline by prioritizing expenditures that yield long-term economic benefits (e.g., infrastructure, innovation).
- Develop a comprehensive debt reduction strategy to stabilize the debt-to-GDP ratio in the medium term.
- Explore debt refinancing strategies to lock in lower interest rates where feasible.
- Impact: Reducing debt servicing pressures will free up resources for critical investments and improve Canada’s fiscal resilience.
2. Mitigate the Economic Impact of Contingent Liabilities
- Why It’s Urgent: Contingent liabilities related to Indigenous claims have grown exponentially (30% annually since 2016), creating fiscal unpredictability and potentially overwhelming future budgets.
- Recommendations:
- Accelerate settlement negotiations to limit litigation costs and interest on outstanding claims.
- Establish a transparent reserve fund specifically for contingent liabilities, ensuring predictable future payouts.
- Increase collaboration with Indigenous communities to address systemic issues and prevent further claims.
- Impact: Resolving liabilities promptly will reduce fiscal uncertainty and demonstrate Canada’s commitment to reconciliation.
3. Address Structural Labor Market and Productivity Challenges
- Why It’s Urgent: Despite job creation, rising unemployment (6.5% in late 2024) and productivity stagnation threaten long-term economic growth. Labor shortages in critical sectors further exacerbate vulnerabilities.
- Recommendations:
- Expand skilled immigration programs to address labor shortages in healthcare, technology, and green industries.
- Increase investment in workforce retraining programs, particularly for sectors undergoing automation or transition due to climate policies.
- Promote workplace flexibility and childcare access to increase labor force participation, particularly among women and aging workers.
- Impact: Enhancing workforce productivity and participation will strengthen the economic foundation and support GDP growth.
Rationale for Prioritization
These areas represent the most immediate threats to economic security and fiscal stability. Addressing them proactively can reduce vulnerabilities and position Canada for sustainable growth.
The Audit: What are the most surprising and disturbing details in these documents?
1. Rapid Growth of Public Debt Charges
- Detail: Public debt charges increased by 35.2% year-over-year to $47.3 billion, representing one of the fastest-growing expense categories. This reflects a combination of higher interest rates and the significant size of Canada’s debt.
- Why Disturbing: Such a rapid increase in debt servicing costs could divert funds from essential public services and programs. It also signals limited fiscal flexibility in the event of future economic shocks.
2. Ballooning Contingent Liabilities
- Detail: The federal government recorded $16.4 billion in expenses for Indigenous contingent liabilities in 2024. This is part of an ongoing surge, with liabilities increasing by 30% annually since 2016.
- Why Disturbing: While reconciliation efforts are vital, the sheer scale and rapid growth of these liabilities are fiscally unsustainable without structural changes or dedicated funding mechanisms. The risk of further liabilities emerging adds to fiscal uncertainty.
3. Significant Write-offs and Provisions for Pandemic Programs
- Detail: The government wrote off $1.2 billion in expired COVID-19 vaccines and therapeutics and recorded $3.5 billion in provisions for unrecovered pandemic-era loans.
- Why Disturbing: These figures highlight inefficiencies in planning and administration during the pandemic response, leading to substantial financial losses. The scale of unrecovered funds also raises questions about accountability in the deployment of emergency programs.
4. Rising Unemployment Despite Job Creation
- Detail: While 475,000 jobs were created in 2023, the unemployment rate rose to 6.5% by late 2024 due to population growth outpacing employment gains.
- Why Surprising: Despite strong job creation, an inability to keep pace with population growth signals structural issues in labor force integration. This poses a risk to Canada’s economic competitiveness and social cohesion.
5. Declining Corporate Income Tax Revenues
- Detail: Corporate income tax revenues decreased by 0.7%, driven by reduced taxable income despite an overall increase in total revenues.
- Why Surprising: The decline in corporate tax revenues during a period of economic recovery raises concerns about potential tax avoidance, economic inequality, or over-reliance on other revenue streams, such as personal income taxes.
6. Substantial Environmental and Climate Spending
- Detail: Over $1 billion was allocated to environmental programs, including pollution pricing proceeds. However, the documents note Canada’s slow progress toward net-zero targets and risks to resource-dependent provinces.
- Why Disturbing: While necessary, this spending may be insufficient given the scale of the climate challenge. The mismatch between spending and measurable progress on climate goals risks long-term environmental and economic consequences.
7. Unanticipated Costs of Indigenous Reconciliation
- Detail: Beyond contingent liabilities, the government is facing unpredictable settlement costs due to increasing litigation and the complexity of claims. These have already exceeded $60 billion since 2016.
- Why Disturbing: The ongoing financial impact of these settlements reflects Canada’s historical neglect of Indigenous issues. Resolving these claims is essential, but the lack of predictability or dedicated funding highlights systemic shortcomings in reconciliation strategies.
8. Softened GDP Growth and Inflation Challenges
- Detail: Real GDP growth slowed to 1.5% in 2023, and inflation remained high throughout the year, only reaching the Bank of Canada’s 2% target by mid-2024.
- Why Disturbing: The prolonged inflationary period and sluggish growth signal a fragile recovery. These economic conditions could exacerbate income inequality and lead to further fiscal strain.
9. High Provisions for Unrecovered Loans
- Detail: Provisions of $3.5 billion were recorded for emergency loans provided during the pandemic. The government continues to face difficulties in recovering these funds.
- Why Disturbing: This provision raises serious questions about the efficiency of loan administration and the government’s ability to safeguard public funds during emergencies.
10. Heavy Dependence on Volatile Resource Revenues
- Detail: Nominal GDP growth slowed to 2.9% in 2023, largely due to easing commodity prices after a surge in 2022. Resource dependence remains a key economic vulnerability.
- Why Surprising: Despite global shifts toward renewable energy, Canada’s reliance on resource revenues remains high, posing long-term risks to economic diversification and stability.
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Business
U.S. Seizes Fentanyl Shipment From Canada In Seattle, As Washington Pressures Ottawa on Crime Networks

U.S. Customs and Border Protection officers have intercepted a shipment containing more than one pound of fentanyl from Canada, marking the latest sign of an accelerating crisis along the BC-Washington border. The fentanyl, concealed within a package believed to have originated in British Columbia, was discovered during a targeted enforcement operation at a Seattle shipping facility on February 6.
The package contained a brown, rock-like substance wrapped in plastic bags. Subsequent testing confirmed it was fentanyl, the synthetic opioid driving tens of thousands of overdose deaths in North America each year.
Area Port Director Rene Ortega, speaking about the seizure, underscored its broader implications. “Fentanyl is an extremely dangerous synthetic drug that continues to devastate communities across the United States,” Ortega said. “CBP remains committed to using every available tool to stop these lethal substances before they reach our streets.”
The latest seizure is part of an escalating pattern that has prompted increasingly aggressive responses from Washington. President Donald Trump has warned of sweeping tariffs in the coming weeks unless Ottawa delivers a credible, actionable plan to crack down on transnational crime networks driving fentanyl production. These networks—operating primarily out of British Columbia—are deeply entrenched with organized crime groups from China and Mexico.
The Bureau has reported extensively on Washington’s mounting frustration with Canada’s handling of the fentanyl crisis. BC Mayor Brad West, who has been in direct communication with senior U.S. officials, has described an urgent shift in tone from American law enforcement and intelligence agencies. In a high-level 2023 meeting with U.S. Secretary of State Antony Blinken, West was briefed on just how seriously Washington views Canada’s role in the illicit drug trade.
“This is no longer just a Canadian domestic issue,” West told The Bureau. “Secretary Blinken made it clear that the Biden administration sees fentanyl as an existential threat. They’re building a global coalition and need Canada fully on board. If we don’t show real progress, the U.S. will protect itself by any means—tariffs or otherwise.”
Concerns extend beyond law enforcement. According to multiple sources with direct knowledge of U.S. intelligence assessments, American agencies have begun withholding key evidence from their Canadian counterparts, citing a lack of confidence that Ottawa will act on it. West confirmed that in his ongoing discussions with senior U.S. officials, they have voiced alarm over the level of access major figures in Asian organized crime appear to have within Canada’s political class.
“They’re basically asking, ‘What’s going on in Canada?’” West said.
The frustration is not new. For years, U.S. and international law enforcement agencies have sought to curb the transnational reach of organizations like Sam Gor, the powerful Asian organized crime syndicate that dominates much of the fentanyl precursor supply chain. But Canada’s response has been widely seen as inadequate. Critics argue that political sensitivities and reluctance to confront entrenched criminal networks have left Canadian law enforcement hamstrung.
The question now is whether Ottawa will take decisive action. Bringing forward measures as sweeping as a RICO-style anti-mafia statute or invoking the notwithstanding clause to bypass legal obstacles to tougher enforcement would represent a sharp departure from the status quo. Both approaches would require confronting entrenched political, legal and economic interests, as well as explaining why existing laws have failed to secure convictions against the most powerful actors in organized crime.
West believes the shifting geopolitical landscape may force Ottawa’s hand. Washington’s patience, he warns, ran thin years ago—and the U.S. is now signaling it will no longer wait.
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Business
USAID funnelled $472 million into Soros-backed media censorship group: report

From LifeSiteNews
A newly released Wikileaks report has revealed that the beleaguered U.S. Agency for International Development directed almost half a billion dollars to Internews, a left-wing media training non-profit group founded by a self-described Marxist activist.
The controversial U.S. Agency for International Development (USAID) directed more than $472 million to an international media non-profit that promotes left-wing narratives and endorses censorship of so-called “disinformation,” according to a recent Wikileaks report.
The Internews Network describes its mission as providing everyone with “trustworthy news and information to make informed decisions,” by “train[ing] journalists and digital rights activists, advanc[ing] internet freedom, and offer[ing] business expertise to help media companies become financially sustainable.” It boasts offices in 30 nations and support for “independent” media in more than 100.
In 2014, NewsBusters reported that Internews was “was founded by a self-described Marxist anti-war protester” and had gotten the vast majority of its revenue from government grants through programs such as USAID, although leftist financier George Soros also donated millions to it.
On February 7, Wikileaks reported that Internews had received $472.6 million from USAID alone as of 2023, that year producing “4,799 hours of broadcasts reaching up to 778 million people” through 4,291 different media outlets, as well as training more than 9,000 journalists.
During a 2023 World Economic Forum (WEF) panel in Davos, Switzerland, Internews President and CEO Jeanne Bourgault declared that “gendered disinformation” was “one of the most terrifying” types of online “misinformation,” which platforms had a responsibility to police through “content moderation,” and advertisers had an obligation to pressure platforms to restrict in thee name of “help[ing] democracy.”
Bourgault expressed similar sentiments at Davos the following year, arguing that “disinformation makes money and we need to follow that money and we need to work with, in particular, the global advertising industry.” She advocated “exclusion lists or inclusion lists just to really try to … focus their ad dollars toward” what she called the “good news and information.”
“And those are U.S. news sites that operate on social media. And those are U.S. news sites. This is the basis of lawsuits here in the U.S. like Daily Wire and the Federalist suing the State Department because U.S. news sites are in these advertiser blacklists,” cybersecurity expert and Foundation For Freedom Online Executive Director Mike Benz told podcaster Joe Rogan this week. “This is top-down U.S. government policy from the White House and I’ll show you the documents on that to the White House executive branch agencies like USAID and State.”
The Trump State Department recently issued a 90-day freeze on foreign aid disbursed through USAID, citing millions in waste and ideologically-biased programs. With exceptions for certain food programs and military aid to Israel and Egypt, the pause is meant to give the administration time to conduct a more thorough review of foreign aid to determine what permanent cuts should be made.
While presented in the media as simply a source of basic care for the poor and sick, USAID has long funneled millions to waste, frivolity, LGBT activism, abortion promotion, and even groups tied to terrorism.
The pause is part of a broader review of federal executive-branch spending currently being spearheaded by Elon Musk’s Department of Government Efficiency (DOGE) advisory project. Last weekend, a federal judge temporarily blocked the administration from putting USAID employees on paid leave, in what critics are calling a particularly extreme case of judicial overreach.
President Donald Trump also signed an executive order directing federal agencies to stop all attempts to pressure private companies to remove content.
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