The Canadian federal government plans to spend C$333 billion in the upcoming fiscal year, an increase of 5% from the previous year, while collecting just $305 billion from taxpayers.

This will leave a deficit of about C$28 billion dollars, which is equivalent to 1.3% of the country’s annual gross domestic product (GDP). If provincial governments’ projected deficits are included, then the overall government budget deficit amounts to around 2.5% of GDP.

Despite the fact that the government’s shortfall has been growing, Canada is still in better fiscal shape than most of its developed-world peers, including the U.S., where the budget deficit amounts to 4.1% of GDP.

General government spending (including the provinces) now amounts to 41% of annual GDP compared to 38.6% 10 years ago. Canada’s spending now exceeds the G7’s average, and it’s also 6% above the level of the U.S.

Gross general government debt, which includes federal, provincial, and local authority debt, amounts to C$1.9 trillion, which is equivalent to 92% of GDP. Ten years ago, the proportion was 67%, so government borrowing has jumped 50% since 2007.

However, this still compares favorably to the rest of the G7, where debt now averages 122% of GDP, though this figure is skewed by Japan’s extraordinary leverage.

Canada and Germany are the only G7 nations that still boast AAA credit ratings. Ongoing budget deficits and a growing government debt pile will eventually weaken Canada’s credit standing, but fortunately that is not on the immediate horizon.