The Department of Finance announced it would raise the debt ceiling by a trillion dollars over the next three years, says Blacklock's Reporter.“The increase is a result of the borrowing,” said Alexander Bonnyman, director of debt management, during testimony before the Commons finance committee.Cabinet plans to amend the Borrowing Authority Act to increase the current debt ceiling from $1.83 trillion to $2.13 trillion. “The increase that is being recommended this year is as a result of total borrowing approaching the $1.83 trillion number,” explained Bonnyman.“The reason is because the Government of Canada is pushing up against the $1.8 trillion?” questioned Conservative MP Marty Morantz (Charleswood-St. James, Man.). “The increase is as a result of the borrowing needs,” Bonnyman confirmed.In 2021, the debt limit was as low as $1.168 trillion. “It would mean in the last three years the debt ceiling was actually increased by a trillion dollars,” noted MP Morantz.Finance Minister Chrystia Freeland has not provided a detailed explanation for the increase. In her 2021 testimony before the finance committee, Freeland asserted that spending was under control.“What it does is set a ceiling for how much the government can spend,” said Freeland. “We are saying this is the upper limit to which the government may borrow, but we are not saying the government will undertake those borrowings, nor are we saying anything about government spending.”“Why should you receive effectively a blank cheque?” asked Conservative MP Ed Fast (Abbotsford, B.C.). “The increase in the borrowing authority is in no way a blank cheque,” responded Freeland. “Every single expenditure by the government needs to be authorized by Parliament.”“Minister, please,” said MP Fast. “Your government blew through its previous debt ceiling within a couple of years.”“It dramatically increases Canada’s debt ceiling without any oversight or accountability,” added Fast. “You’re simply saying, ‘Give me a blank cheque and then trust me.’ We just cannot do that.”Freeland countered, “The characterization of the borrowing authority limit as a blank cheque is simply false. This is a transparent and open authorization of a level up to which the government may borrow.”The government has not set a date to balance the federal budget for the first time since 2007. Freeland previously indicated that spending cuts would be necessary. “There are no free lunches,” she stated during a 2020 speech at the Toronto Global Forum, emphasizing that the government’s expansive fiscal approach in response to the coronavirus pandemic could not continue indefinitely.Freeland reiterated her commitment to fiscal responsibility in the Commons, saying, “I meant what I said. I’d be happy to read my speech again. I wrote it myself. I am proud of it.”“Is there a dollar figure to which she would limit the debt?” asked now-Opposition Leader Pierre Poilievre. “We are mindful that limits exist,” replied Freeland.“What are they?” pressed Poilievre. “There is no blank cheque,” Freeland reaffirmed.
The Department of Finance announced it would raise the debt ceiling by a trillion dollars over the next three years, says Blacklock's Reporter.“The increase is a result of the borrowing,” said Alexander Bonnyman, director of debt management, during testimony before the Commons finance committee.Cabinet plans to amend the Borrowing Authority Act to increase the current debt ceiling from $1.83 trillion to $2.13 trillion. “The increase that is being recommended this year is as a result of total borrowing approaching the $1.83 trillion number,” explained Bonnyman.“The reason is because the Government of Canada is pushing up against the $1.8 trillion?” questioned Conservative MP Marty Morantz (Charleswood-St. James, Man.). “The increase is as a result of the borrowing needs,” Bonnyman confirmed.In 2021, the debt limit was as low as $1.168 trillion. “It would mean in the last three years the debt ceiling was actually increased by a trillion dollars,” noted MP Morantz.Finance Minister Chrystia Freeland has not provided a detailed explanation for the increase. In her 2021 testimony before the finance committee, Freeland asserted that spending was under control.“What it does is set a ceiling for how much the government can spend,” said Freeland. “We are saying this is the upper limit to which the government may borrow, but we are not saying the government will undertake those borrowings, nor are we saying anything about government spending.”“Why should you receive effectively a blank cheque?” asked Conservative MP Ed Fast (Abbotsford, B.C.). “The increase in the borrowing authority is in no way a blank cheque,” responded Freeland. “Every single expenditure by the government needs to be authorized by Parliament.”“Minister, please,” said MP Fast. “Your government blew through its previous debt ceiling within a couple of years.”“It dramatically increases Canada’s debt ceiling without any oversight or accountability,” added Fast. “You’re simply saying, ‘Give me a blank cheque and then trust me.’ We just cannot do that.”Freeland countered, “The characterization of the borrowing authority limit as a blank cheque is simply false. This is a transparent and open authorization of a level up to which the government may borrow.”The government has not set a date to balance the federal budget for the first time since 2007. Freeland previously indicated that spending cuts would be necessary. “There are no free lunches,” she stated during a 2020 speech at the Toronto Global Forum, emphasizing that the government’s expansive fiscal approach in response to the coronavirus pandemic could not continue indefinitely.Freeland reiterated her commitment to fiscal responsibility in the Commons, saying, “I meant what I said. I’d be happy to read my speech again. I wrote it myself. I am proud of it.”“Is there a dollar figure to which she would limit the debt?” asked now-Opposition Leader Pierre Poilievre. “We are mindful that limits exist,” replied Freeland.“What are they?” pressed Poilievre. “There is no blank cheque,” Freeland reaffirmed.
