We do this exercise every year just to show what happens in the long run if the current fiscal structure is maintained over a very long period of time, 75 years. We impose on that the demographic projections that essentially show the aging of population in Canada, both for the country as a whole and also for different provinces. That exercise essentially looks at this fiscal structure and then moves that forward for 75 years and sees what happens to debt, and debt as a share of GDP. That's how we calculate this number of 1.2%.
Over time the current fiscal structure in Canada at the federal level is such that you are going to have this fiscal room of 1.2%, which means that the debt-to-GDP ratio, based on the current projection that we have done over a long period of time, continues to decline. In order to maintain that at the current level, then you can still spend more money, as we mentioned, $24.5 billion, or 1.2% of GDP, or reduce taxes by that amount. What that does is it maintains the current debt-to-GDP ratio at that level for 75 years.
If you don't do that and you leave the current structure unchanged, then the debt-to-GDP ratio will continue to decline. As we show in our report, the debt, eventually, will be eliminated.