Government Spending

No Sign of Significant Debt Reduction or Tax Relief in Ford’s Spring 2023 Budget – It’s All Spend, Spend, Spend!

— Jul 5, 2023

No Sign of Significant Debt Reduction or Tax Relief in Ford’s Spring 2023 Budget—It’s All Spend, Spend, Spend! is a new study that details what the current Ontario government could have achieved in terms of lower taxes, surpluses and debt relief if it had maintained the spending levels of the previous Wynne government. Instead, the current government has increased spending by $9.5 billion above the average (inflation adjusted) annual spending of its predecessor, and is forecasting a $1.3 billion deficit this year.

Fiscal Waste During the Pandemic in Canada and the United States

— Jun 27, 2023

Fiscal Waste During the Pandemic in Canada and the United States is a new essay in the Fraser Institute’s series on the COVID-19 pandemic. It finds that the total cost of the Ottawa’s wasteful COVID spending—money that was poorly targeted or sent to ineligible recipients—will eclipse $110 billion by 2032/33, partly as a result of higher debt interest costs. In the United States, the total cost of wasted COVID spending will exceed $1.5 trillion over the next ten years.

Repeating the Past: Provinces Accept Federal Money at their Peril

— Jun 6, 2023

Repeating the Past: Provinces Accept Federal Money at Their Peril draws on the experience of Canada in the 1990s, when the federal government reformed and reduced transfers to the provinces to tackle the federal deficit and mounting debt—and how that comparison can be used to inform the decisions of policymakers today.

Global Aftermath: The Economic and Fiscal Effects of COVID in Canada and the World

— May 11, 2023

Global Aftermath: The Economic and Fiscal Effects of COVID in Canada and the World finds that during the pandemic, despite high levels of government spending and debt accumulation, Canada’s economy underperformed compared to most other advanced countries.

How Provincial Governments Respond to Fiscal Shocks and Federal Transfers

— May 2, 2023

How Provincial Governments Respond to Fiscal Shocks and Federal Transfers is a new study that finds despite misperceptions that government deficits have no cost, higher deficit-financed spending by provincial governments over the past 50 years has, in fact, led to higher taxes and higher debt-servicing costs for taxpayers.

Comparing Government and Private Sector Compensation in Canada, 2023 Edition

— Apr 18, 2023

Comparing Government and Private Sector Compensation in Canada, 2023 Edition, finds that government employees across Canada—including federal, provincial and municipal workers—were paid 8.5 per cent higher wages, on average, than workers in the private sector in 2021, the most recent year of available comparable data from Statistics Canada’s Labour Force Survey.

Recent Government Spending Commentaries and Blog Posts

Federal budget’s scale of spending and debt reveal a government lacking self-control

Jake Fuss, Grady Munro

In 2024/25, federal program spending will reach a projected $483.6 billion—up $16.1 billion from the previous budget’s estimates.

Ottawa touts wait lists for dysfunctional child-care program

Matthew Lau

Appeared in the Financial Post, April 11, 2024

Only public and non-profit providers have access to the billions in government grants.

It’s time for an honest conversation about the costs of new federal programs

Jake Fuss, Grady Munro

Support for government-funded pharmacare, dental care and daycare plummeted to well below 50 per cent if the programs are paid for by tax hikes.

Growing the government won’t help Canada’s economy

Jake Fuss, Grady Munro, Alex Whalen

The Trudeau government has recorded the five-highest years of federal spending in Canadian history.

Canada’s federal government disregards its own fiscal rules—unlike Sweden

Grady Munro, Jake Fuss

Rather than adopt the discipline necessary to get back on track, Ottawa simply moves the goalposts.

Alberta and B.C. budgets represent two different approaches to government finances

Grady Munro, Tegan Hill

According to projections, government debt interest will cost nearly $1,000 per British Columbian by 2026/27.

Federal government should listen to Canadians and restrain spending in upcoming budget

Grady Munro, Jake Fuss

In 2023/24, interest costs on federal government debt will reach a projected $46.5 billion.

Balanced budget within reach—if Ottawa restrains spending

Jake Fuss, Grady Munro

Since 2014/15, annual federal program spending has increased by $193.6 billion—or 75.5 per cent.

New Brunswick government should resist temptation to increase spending before election

Alex Whalen

This year, the province will spend a projected $548 million on provincial debt interest.

Newfoundland and Labrador government must balance budget to tackle massive debt

Grady Munro, Alex Whalen

Appeared in the St. John's Telegram, March 15, 2024

In 2023/24, the province will spend roughly $1.1 billion on debt interest.