Longwoods Blog

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This report assesses the fiscal sustainability of Canada’s federal government, subnational governments and public pension plans. Its goal is to evaluate if policy changes are required to correct the long-term path of public debt, after considering the economic and fiscal impacts of population ageing. Fiscal sustainability means that government debt does not ultimately grow faster than the economy. To assess fiscal sustainability PBO projects the path of federal and subnational government debt and public pension plan assets over a 75-year horizon. If a government’s debt relative to gross domestic product (GDP) is projected to continue to rise above its current level over the long term, its fiscal policy is not sustainable and may require policy actions. Read the full report here.

This entry was posted on Friday, July 24th, 2015 at 9:44 am and is filed under Publisher's Page.