Fiscal Sustainability Report 2022
This report provides PBO’s assessment of the sustainability of government finances over the long term for the federal government, subnational governments and public pension plans.
Assuming no major new spending initiatives, we project the total government debt-to-GDP ratio to decline steadily over the long term largely due to the fiscal room at the federal level. The federal flexibility reflects elevated revenues as well as spending on programs that will gradually decline over the long term relative to the size of the economy.
Healthcare spending will continue to outpace growth in the economy as the population ages. In most jurisdictions, the Canada Health Transfer will not keep pace with rising healthcare spending and growth in social spending will exceed increases in the Canada Social Transfer.
Parliamentary Budget Officer