• Federal deficit projected to exceed $78 billion

• This is Ottawa’s tenth consecutive unbalanced budget

• Every newborn baby in Canada now enters the world with a debt of more than $33,000.

Repackaging record spending as “investments” while offering no credible path back to balance is the opposite of responsible fiscal stewardship, asserts the MEI in response to the tabling of the federal budget this afternoon.

“Canadians should find a deficit this large extremely troubling,” says Emmanuelle B. Faubert, economist at the MEI. “The attempt to disguise it under a new wave of so-called investments makes it even more concerning.

“It’s one thing to spend money you don’t have; it’s yet another to shirk responsibility for it.”

The Carney government is projecting a deficit of $78.3 billion for 2025-2026, up from $48.3 billion last year.

Interest payments are projected to rise to $55.6 billion this upcoming fiscal year, but servicing the debt will mount rapidly: to $76.1 billion by 2030, a 37 per cent spike.

Current debt charges cost taxpayers more than federal healthcare transfers to provinces, which amount to $54 billion annually.

This budget deficit would bring the national debt to $1.48 trillion, and mark the tenth consecutive year without a balanced federal budget. Every newborn baby in Canada now enters the world with a debt of more than $33,000.

Much of the new spending is categorized as capital as opposed to operational, which is a new reclassification scheme unveiled by the Carney government that does nothing to change the total debt. The government’s net debt is predicted to grow by another 21 per cent by 2030, to $1.79 trillion.

The Build Canada Homes program, for one, has an initial $13-billion price tag. The MEI studied a similar program launched in New Zealand, which accomplished just 3 per cent of its total objective.

The MEI warns that this marks a shift toward increased central planning, with Canada becoming an economy where politicians, instead of businesses and consumers, decide which industries succeed.

Overtures in the budget hint at a possible future walk-back of the emissions cap, which the think tank has strongly advocated for. In March, the PBO released a report estimating that the emissions cap would reduce our collective prosperity by $20.5 billion in 2032 and result in 40,300 fewer jobs than there would otherwise be.

A clearer path toward shrinking the federal bureaucracy has been laid out, with the government planning to eliminate 16,000 full-time positions, representing 4.5 per cent of the workforce as of March 2025.

Economist Emmanuelle B. Faubert would like the government to go further. While Ottawa plans to maintain the size of the federal bureaucracy at about 330,000 employees by 2028-29 through attrition, the MEI sees this as insufficient, and urged a more ambitious approach in its pre-budget submission.

The MEI recommended cutting the federal workforce by 17.4 per cent, mirroring the Chrétien-era reductions of the 1990s, which would eliminate roughly 64,000 positions and save taxpayers $10 billion annually.

The MEI welcomes the decision to expand capital cost allowances, letting businesses write off new machinery and equipment more quickly. This measure promotes investment and productivity by reducing the upfront cost of doing business.

“The government may try to rebrand its debt, but Canadians will still be the ones paying it off for decades,” says Ms. Faubert. “Carney calls it a generational budget, and he’s right, but only because future generations will be stuck footing the bill.”

* * *

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

Sonia Elijah

Cow feed additive Bovaer meant to curb climate change seems to be killing some Danish dairy cows

Since October 1, 2025, when many Danish dairy farmers began incorporating the synthetic additive Bovaer (containing 3-nitrooxypropanol) into their cows’ feed—alarming reports have come in of animals suffering from: stomach cramps, fevers, miscarriages, drastic drops in milk production, sudden collapses and in some cases, the need to be euthanized.

In the shocking video below, Danish farmer Rene Lillehjælper discusses how her husband is driving their “cow ambulance” tractor— transporting yet another collapsed cow from their dairy farm—because of the “Bovaer Poison.”

Marketed as a “climate-friendly” methane reducer, this product—produced by the Dutch-Swiss giant DSM-Firmenich—became a legal requirement for Danish dairy farmers to add into their animal feed for 80 days or for their cows to be fed extra fat throughout the year.

Notably, farmers experimenting by removing Bovaer saw their herds recover rapidly, only for symptoms to return upon reintroduction. Yet, despite these red flags, authorities insist on pushing ahead, with an investigation only now underway.

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These reports build on the concerns I outlined in my November 2024 investigation into Arla’s UK trials, where EFSA tolerance studies highlighted issues such as reduced feed intake, decreased organ weights (including ovaries and heart), and altered enzyme levels in cows at elevated doses—yet these effects were ultimately classified as “non-adverse” by regulators.

BREAKING: Methane-Reducing Feed Additive Trialled in Arla Dairy Farms

Sonia Elijah

·

November 28, 2024

On November 26th, Arla Foods Ltd. announced via social media their collaboration with major UK supermarkets like Tesco, Aldi, and Morrisons to trial Bovaer, a feed additive, aiming to reduce methane …

Read full story

What was even more troubling were the findings from my analysis of the safety assessment report, prepared by the UK’s Food Standards Agency (FSA) and Food Standards Scotland (FSS), reviewed by Animal Feed and Feed Additives Joint Expert Group (AFFAJEG) and the Advisory Committee on Animal Feedingstuffs (ACAF).

It stated: “In relation to safety studies for the consumer, a 2-year carcinogenicity study in Wistar rats showed “mesenchymal cell tumours were reported in 4 out of 49 females at the top dose of 300 mg/kg bw/day of 3-NOP given orally. Based on these results, the original study report concluded there was evidence of carcinogenicity in female rats.”

AFFAJEG noted potential for mesenchymal cell hyperplasia and benign tumours at high doses but, citing no malignant tumours or genotoxicity, concluded the additive is not carcinogenic at recommended inclusion rates.

ACAF echoed that the additive “can be considered safe for consumers.” Yet, their conclusion was seemingly contradicted by the following statement: “The additive should be considered corrosive to the eyes, a skin irritant and potentially harmful by inhalation.”

In a separate development, a May 2024 FDA letter addressed to Elanco US, Inc, (which has an agreement with DSM-Firmenich to market Bovaer) stated: “Based on a review of your data and the characteristics of your product, FDA has no questions at this time regarding whether Bovaer® 10 will achieve its intended effect and is expected to pose low risk to humans or animals under the conditions of its intended use.”

Ironically, the FDA letter included an attachment with the following warning:

It should be noted that Bovaer passed the FDA review in under 12 months—much shorter than industry standard.

Kjartan Poulsen, chairman of the National Association of Danish Dairy Producers, has received numerous calls from concerned farmers. “We have so many people who call us and are unhappy about what is happening in their herds,” he shared with TV 2.

He described the recurring issues as unusual and is urging reports of suspected Bovaer-linked miscarriages. Poulsen emphasized that any animal harm undermines the additive’s purpose: “This should give a climate effect – and if cows die from this, or they produce less milk, then the effect is minus.” He is calling for a temporary pause from Agriculture Minister Jacob Jensen and for farmers to cease use if welfare issues arise.

Approved by the European Commission in 2022 based on EFSA assessments, Bovaer was deemed safe for cows, consumers, and the environment, with claims of up to 30-45% methane reduction.

However, field experiences differ. Reports from Jyllands-Posten and TV 2 describe lower milk yields tied to miscarriages, plus collapses—some cows recovering with treatment but others needing to be euthanised.

Earlier whispers from Danish farmers included fevers, diarrhoea, mastitis, and even cow deaths attributed to Bovaer. One producer lost six animals in under a month. Critics label it “animal cruelty,” especially under mandatory use for farms with over 50 cows.

The Danish Veterinary and Food Administration acknowledges these reports and has enlisted Aarhus University to analyse real-world data, with initial findings expected after the 2025-26 new year.

The irony is stark: a product meant to “save the planet” for reducing methane is harmful to dairy herds, slashing productivity, and raising fears of contaminating the food chain—despite assurances it “breaks down fully” with no residues.

Yet, the true winners emerge clearly: DSM-Firmenich, cashing in on booming sales fuelled by mandates and climate subsidies, alongside powerhouse investors like BlackRock (holding ~3.3%) and Vanguard, who reap the rewards from this relentless Net-Zero drive.

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