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Paying down Canada’s mortgage.

Government applies entire surplus to federal debt

2005 federal surplus: $13 504 000 000

2005 interest paid on debt: $21 353 000 000 (4%)

2005 net federal debt: $523 344 000 000

Minus 2005 federal surplus of $13 504 000 000

2006 net federal debt: $509 840 000 000

2006 interest paid on debt (assuming same interest rates as 2005): $21 353 000 000 / $523 344 000 000 * $509 840 000 000 = $20 802 000 000

2006 (and every year going forward) savings from 2005 debt repayment: $551 000 000

I suggested that they apply it to *our* mortgage, but short of that, this makes total sense to me.

One final calculation – net 2005 federal debt per person: $16 354.

Ugh.

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