MNI POLICY: Canada Federal Debt Breaks Trillion-Dollar Mark

Canada's federal debt broke the trillion dollar mark for the first time in the finance department's monthly fiscal monitor report released Friday, reaching CAD1.007 trillion in February on a monthly shortfall of CAD14.4 billion as outsized spending to tackle the Covid-19 pandemic continues.

The previous report for January showed a CAD993 billion deficit. Finance Minister Chrystia Freeland presented her first budget in more than two years on April 19, showing the debt would reach CAD1.08 trillion in the fiscal year that ended in March and CAD1.23 trillion in the fiscal year that began April 1.

The budget "helped millions of Canadians keep a roof over their head and food on the table throughout this crisis," Freeland spokeswoman Katherine Cuplinskas told MNI by email. "We will continue to follow the advice experts, such as those at the IMF, who have cautioned Canada to avoid a premature withdrawal of fiscal support," she said. "Canada has a well-deserved international reputation for smart and prudent fiscal management -- and that will continue to be our approach."

The federal debt has climbed CAD286 billion since March of last year. Revenues fell 14% and program spending jumped 82%.