Freeland Resigns as Finance Minister as Canada Reports $62 Billion Deficit

The fall economic update reveals a significant overshoot of fiscal targets and no clear path to a balanced budget, raising concerns over federal spending priorities.

Chrystia Freeland resigned as finance minister hours before the release of the fall economic update, citing disagreements with Prime Minister Trudeau over government spending policies.
The 2023-24 fiscal year deficit reached $61.9 billion, exceeding the self-imposed $40.1 billion cap by over 50%, with projections for deficits to continue in coming years.
The government attributed part of the overshoot to one-time costs for Indigenous claims but also announced $24.2 billion in new spending over six years, primarily focused on clean growth and infrastructure.
Freeland criticized the proposed $250 rebate cheques as a 'costly political gimmick,' and the plan was excluded from the update due to lack of parliamentary support.
Public debt charges are projected to rise significantly, with federal debt nearing $1.3 trillion, prompting calls for spending cuts and fiscal responsibility from opposition voices.