Frequently asked questions
Deficit and debt questions Canadians ask
Brief answers with links to the longer explanations.
Are Canada’s deficit and debt the same?
No. The deficit is an annual shortfall; debt is an accumulated balance.
Does a $40-billion deficit mean total debt is $40 billion?
No. It means the annual balance added roughly $40 billion before other accounting changes.
Does balancing the budget eliminate the debt?
No. It stops a new annual deficit but does not erase previously accumulated debt.
Why do different websites show different debt totals?
They may be using gross debt, net debt, market debt, federal accumulated debt or all-government measures.
Is every bond maturity a new expense?
No. Principal repayment is a financing transaction and is often refinanced. Interest contributes to annual public debt charges.
Which federal number is final?
For a completed fiscal year, use audited Public Accounts or the Annual Financial Report.
Is this a government website?
No. It is an independent educational publication.