Canadian Taxpayers Federation says Budget 2026 projects $60 billion in federal debt interest payments

The Canadian Taxpayers Federation (CTF) is raising concerns about the federal government's spending and borrowing plans in Budget 2026, saying Ottawa is on track to borrow more than $60 billion this year while spending billions more than originally projected.

According to the CTF, federal spending is now expected to reach approximately $602 billion, up from the $588 billion projected in Budget 2025.

The organization says the government is also projecting revenue of $540 billion, an increase from the $523 billion forecast in the previous budget. Despite the additional revenue, Ottawa is still expected to borrow more than $60 billion.

Federal debt is projected to reach $1.37 trillion by the end of the year.

The CTF estimates interest payments on the federal debt will cost taxpayers approximately $60 billion this year, or more than $1 billion per week.

That amount exceeds the federal government's projected $57 billion in health transfers to the provinces and territories, as well as the $52 billion expected to be collected through the Goods and Services Tax.

Franco Terrazzano, federal director of the Canadian Taxpayers Federation, criticized the government's spending increases and called for a plan to reduce borrowing.

The organization also pointed to a recent Parliamentary Budget Officer report identifying debt interest payments as the federal government's fastest-growing expense.

Budget 2026 also includes measures related to tax reform and affordability. The government says it is launching an effort to simplify the federal tax system, which the CTF has advocated for over several years.

The budget also includes capital gains tax relief, which is expected to save taxpayers $715 million over four years.

However, the CTF raised concerns about the government's plan to begin increasing the federal fuel excise tax shortly after Christmas.

Terrazzano said the government should reduce spending to create room for further tax relief without increasing federal borrowing.

The Canadian Taxpayers Federation is a taxpayer advocacy organization that regularly calls for lower taxes, reduced government spending and greater accountability in public finances.

Editorial note: The figures and criticisms above are attributed to the Canadian Taxpayers Federation and its interpretation of Budget 2026. They should not be presented as independent findings.