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Debt & Fiscal

Public debt, deficits, interest costs, and what governments spend versus deliver.

An empty dental treatment room with chair and equipment (illustrative) — Photo: Nenad Stojkovic, CC BY 2.0, via Wikimedia Commons

Debt & Fiscal|Canada

Auditor General: dental plan ran $1.1 billion over budget in two years, and Health Canada went six months without checking claim decisions

Auditor General Karen Hogan’s 29 October audit finds the Canadian Dental Care Plan has made care cheaper for its 6.9 million members. Those who used it paid $264 out of pocket on average, against $536 for households generally. But payments ran about $1.1 billion over budget in the first two years, covered by moving money between years, and actuarial forecasts show the shortfall continuing to 2031–32. For six months of 2025–26, Health Canada did not check whether claims decisions were accurate.

Daily Teabag Desk·Centre
A dental chair in a clinic (illustrative) — Photo: AuliRaha, CC BY-SA 4.0

Debt & Fiscal|Canada

Ottawa waives repayment of up to $434.8 million in dental care for people wrongly enrolled despite having private coverage

A remission order published in the Canada Gazette on 21 October (SOR/2026-204) forgives debts for people who incorrectly attested they had no private dental insurance to join the Canadian Dental Care Plan in its first three benefit periods, then were found ineligible. Interest is waived and anyone who already repaid is refunded. Health Canada puts the cost at up to $434.8 million and says eligibility will now be checked before enrolment.

Daily Teabag Desk·Centre
Government ministry towers in The Hague — Photo: Vincent van Zeijst, CC BY-SA 4.0

Debt & Fiscal|European Union

Dutch cabinet plans to shrink the national civil service by about 25,000 full-time jobs by 2035

In a letter to parliament published 26 October, State Secretary Eric van der Burg says the central government must save €900 million in 2027, rising to €3.5 billion a year from 2035, which the cabinet estimates means about 25,000 fewer full-time posts. Police and defence are exempt. The letter also promises a law within two years to let agencies share residents’ data more easily, fewer advisory bodies, at least 500 rules cut or simplified a year, and AI savings targets in early 2027.

Daily Teabag Desk·Centre
Library of Parliament, Ottawa — Photo: Wladyslaw, CC BY-SA 3.0

Debt & Fiscal|Canada

PBO: federal deficits stay above $63 billion a year to 2030-31 as Champagne sets Budget 2026 for 5 November

The Parliamentary Budget Officer’s October outlook (20 October) projects a $63.3 billion deficit this year, peaking at $70.2 billion in 2027-28 and still $67.8 billion in 2030-31. New measures since June, led by the $36 billion Productivity Mega Deduction, cost $52.6 billion over five years and outweigh the extra revenue from higher prices. Debt charges climb from $59.3 billion to $83.0 billion. The same day, Finance Minister François-Philippe Champagne said he will table Budget 2026 on 5 November.

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HM Treasury, Government Offices Great George Street, Whitehall, London — Photo: Tilman2007, CC BY-SA 4.0

Debt & Fiscal|World

UK national debt passes £3 trillion for the first time as September borrowing reaches £24.5 billion

The Office for National Statistics (21 October) puts public sector net debt at £3,005.0 billion at the end of September, the first time above £3 trillion, or 94.0% of GDP. As a share of the economy, debt is 0.7 points lower than a year ago. September borrowing was £24.5 billion, £1.9 billion above the OBR forecast, with £10.9 billion in central government debt interest, the highest September since records began in 1997. The Budget is on 28 October.

Daily Teabag Desk·Centre
Flags outside the European Court of Auditors, Luxembourg — Photo: VT98Fan, CC BY-SA 3.0

Debt & Fiscal|European Union

EU auditors: 3.8% of 2025 spending was affected by error, and EU borrowing could reach €1 trillion by 2027

The European Court of Auditors’ annual reports on the 2025 budget, published 8 October 2026, sign off the accounts but give an adverse opinion on spending, with an estimated error rate of 3.8% (2024: 3.6%). Outstanding EU borrowing hit €738.9 billion at end-2025 and could reach €1 trillion by 2027. The Commission has not published an overall plan to repay NextGenerationEU by 2058.

Daily Teabag Desk·Centre
RCAF CF-18 Hornet demonstration jet — Photo: Matt Hecht, public domain

Debt & Fiscal|Canada

PBO: hitting NATO’s 3.5% core defence target means $163.6 billion a year by 2035-36, and a deficit $63.7 billion bigger that year

A Parliamentary Budget Officer primer published 6 October 2026 works through what Canada’s NATO pledge costs. On a gradual path, core defence spending rises from $95.7 billion in 2030-31 to $163.6 billion in 2035-36. That is $70.1 billion more than staying at 2% of GDP. On an accrual basis it would add $63.7 billion to the deficit in 2035-36 and 5.7 points of GDP to federal debt. The PBO says the paths are illustrative, not projections, and that the extra cost is not yet in budget forecasts.

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A VIA Rail train in London, Ontario — Photo: Balcer, CC BY 2.5

Debt & Fiscal|Canada

PBO prices Alto high-speed rail at $75–113 billion, above Ottawa’s $60–90 billion range

The Parliamentary Budget Officer’s 1 October 2026 report, requested by the Senate finance committee, estimates the baseline Toronto–Québec City route (without the Kingston option) would cost $75 billion to $113 billion to build, in 2024 dollars. The government’s own range is $60–90 billion. Tunnels, the Canadian Shield, and later start dates drive the number. Ridership and operating costs come in a second report.

Daily Teabag Desk·Centre