Windsor, NS (April 29, 2026) – The Atlantic Chamber of Commerce (ACC) is expressing concern over the federal government’s Spring Economic Update 2026, which continues a pattern of large deficits and projects the federal net debt-to-GDP ratio to remain at approximately 41–42% through the end of the decade.

“While we recognize the government’s efforts to support economic development and increase the number of skilled tradespeople, the update falls short on the actions businesses urgently need,” said Rhonda Tulk-Lane, President & CEO of the Atlantic Chamber of Commerce. “Persistent deficits exceeding $60 billion annually, projected by the Parliamentary Budget Officer through 2030 and confirmed in this update are not sustainable. Federal debt servicing costs reached a record $53.8 billion in 2024–25, surpassing spending on the Canada Health Transfer and National Defence. These costs are expected to consume up to 16 cents of every tax dollar by 2030. This is funding that could otherwise be directed toward neglected infrastructure, workforce development, and economic diversification.”

ACC is also concerned that the government is now aiming to maintain the debt level at 41–42% of GDP, rather than reducing it. This marks a shift from 2018, when the target was to lower debt to 30% of GDP. Maintaining a higher debt level limits the government’s ability to invest in growth, reduces fiscal flexibility, and increases vulnerability to economic shocks, particularly as Atlantic Canada faces ongoing trade pressures, energy transitions, and slower population growth.

“Without clear limits on government debt, we risk returning to a time when high debt led to slower growth, higher costs, and difficult conditions for businesses. This was addressed in the 90s by setting and achieving clear debt-reduction targets. We need to do that again,” added Tulk-Lane.
 

ACC is calling on the federal government to commit to a credible, multi-year plan to stabilize and reduce the federal net debt-to-GDP ratio to below 30% by 2035. Achieving this target would generate significant interest savings, lower long-term borrowing costs for businesses, and free up resources to invest in infrastructure, skills training, and export diversification, all key elements of a strong and resilient economy.