Federal Interest Payments Forecast to Hit $70 Billion by 2029: Budget Office

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a 20 dollar bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, on Sept. 4, 2024. The Canadian Press/Justin Tang

Interest payments on Canada’s federal debt are expected to reach $69.9 billion by 2029, according to the Parliamentary Budget Office (PBO).

“Public debt charges have increased significantly over the last three years due to a substantial increase in the stock of public debt over the course of the pandemic combined with subsequent higher effective interest rates,” said a PBO report released on June 4.