As Prime Minister Mark Carney urges Canadians to brace for tighter budgets, federal data show that Canada disbursed $1.38 billion in 2023–24 to major international financial institutions through Global Affairs Canada and Finance Canada.
According to the federal government’s Statistical Report on International Assistance 2023–24, Canada channelled $825.26 million to the World Bank Group, including $486.92 million to the International Development Association (IDA), $187.90 million to the International Bank for Reconstruction and Development (IBRD), and $100 million to the International Finance Corporation (IFC).
Economists are warning that Canada could face serious long-term consequences if it does not get its federal spending under control. Desjardins Deputy Chief Economist Randall Bartlett told Castanet News that Prime Minister Mark Carney’s large planned deficit is “a gamble” that risks pushing public debt to “unsustainable” levels. Bartlett cautioned that continued overspending could undermine investor confidence and make future fiscal corrections more painful.
Other significant disbursements included $230.76 million to the Asian Development Bank, $163.57 million to the African Development Fund, and $20.35 million to the Caribbean Development Bank. Canada also contributed $128 million to the International Fund for Agricultural Development (IFAD) and $8.38 million to the Multilateral Fund for the Implementation of the Montreal Protocol, which supports efforts to phase out ozone-depleting substances.
In total, these transfers amounted to $1.376 billion in multilateral outlays for 2023–24. The expenditures form part of Canada’s long-term commitments to multilateral development institutions that finance poverty reduction, infrastructure, and environmental protection initiatives in developing countries.
According to Reuters, Carney himself recently acknowledged that federal expenditure has grown at more than 7% annually on average over the past decade — roughly twice the rate of economic growth. Analysts say this trend, if unchecked, will lead to rising interest costs on the national debt, further straining the federal budget.
Economists say Canada risks a worsening debt-to-GDP ratio, reduced flexibility to respond to economic shocks, and a greater burden on taxpayers. They also warn that heavy borrowing could rekindle inflationary pressures, eroding household purchasing power and slowing growth.