Prime Minister Mark Carney’s government has “limited room to cut taxes” with the fiscal deficit projected to balloon after Budget 2025 , a report by the Parliamentary Budget Office said on Thursday.

The PBO published its independent assessment of Budget 2025 , highlighting “financial pressures and concerns about transparency.”

“According to the PBO, the Government has limited room to cut taxes or increase spending if it wants to keep the federal debt-to-GDP ratio in 2055–56 at or below its current level,” the PBO said in a press release accompanying the report.

The debt-to-GDP ratio is an economic metric that measures a country’s debt against the total value of goods and services produced in the country.

The federal debt-to-GDP ratio in Budget 2025 is projected to be higher compa

See Full Page