Template-Type: ReDIF-Article 1.0
Author-Name: Dahlby, Bev
Author-Workplace-Name: University of Calgary 
Title: Is Public Debt Reduction Worthwhile?
Abstract:This paper examines whether reducing Canada’s federal debt is a worthwhile policy objective,
in light of economists’ advice and public opinion favouring debt reduction. As well, the federal
government has projected a gradual decrease in its debt-to-GDP ratio over the next 30 years.
Reducing the public debt means that governments have to adopt a policy of fiscal austerity. This
paper focuses on the trade-offs of fiscal austerity — short-term sacrifices for long-term benefits.
Journal: The School of Public Policy SPP Briefing Papers
Volume: 18
Issue: 07
Year: 2025
Month: February
File-URL: https://www.policyschool.ca/wp-content/uploads/2025/02/FP-8-PubDebt-Final.pdf
File-Format: Application/pdf
Handle: RePEc:clh:techni:v:18:y:2025:i:07