The C.D. Howe Institute has released an analysis projecting that Canada’s federal deficit will exceed $92 billion in the current fiscal year, driven primarily by Prime Minister Mark Carney’s commitment to increase defence spending to meet NATO’s target of two percent of GDP. The institute warns that this surge in defence expenditure will contribute to substantial annual deficits averaging $77.7 billion and cautions against passing these financial burdens onto future generations. Concurrently, Ontario’s post-secondary education sector is experiencing significant cuts, with over 10,000 faculty and staff layoffs and the cancellation or suspension of 600 programs across 24 public colleges, affecting both urban and rural communities. The federal government anticipates finding operational savings within the expanding defence budget despite its growth. Additionally, the Public Service Alliance of Canada (PSAC) reports that nearly 2,000 federal workers have been notified that their jobs are at risk due to workforce adjustments ahead of further planned spending cuts by the Carney administration, which aims to reduce government spending by $25 billion. These developments have raised concerns about fiscal responsibility and the economic impact of increased defence spending alongside public sector job losses.