Canada’s leeway to take on more debt is an accounting fiction

In Miscellaneous by Michael Rae

Montreal, March 24, 2016 – In its first budget, the new federal government justifies its imposing deficits using the argument that Canada’s net debt is clearly lower than that of the other G7 countries. However, by using gross debt instead of net debt, Canada’s debt-to-GDP ratio goes from 38% to