Deficits & Debt

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.

Stress Testing the Federal Fiscal Anchor

— Mar 16, 2023

Stress Testing the Federal Fiscal Anchor finds that that there is a 30 per cent chance that the federal debt to GDP ratio will increase over a 10-year time period, meaning the federal government would fail to achieve its core fiscal goal.

Prime Ministers and Government Spending: 2023 Edition

— Mar 9, 2023

Prime Ministers and Government Spending:2023 Edition is a new study that finds federal spending reached $19,208 per-person in 2020-21, which represents the single highest level in the country’s history, with the current federal government is on track to record the five highest levels of per-person spending (2018 to 2022) in Canadian history.

Federal and Provincial Debt-Interest Costs for Canadians, 2023 edition

— Feb 2, 2023

Federal and Provincial Debt Interest Costs for Canadians, 2023 edition is a new study that finds Canadians in every province will pay more than $1,300 per person in 2022/23 on government interest costs, totalling $68.6 billion on interest payments for the federal and provincial debts.

The Growing Debt Burden for Canadians: 2023 Edition

— Jan 10, 2023

The Growing Debt Burden for Canadians: 2023 Edition finds that not only has Canada’s projected combined government debt (the federal debt and the provincial debt of all 10 provinces) nearly doubled since 2007/08, the year before the last recession, but the combined debt now equals 74.6 per cent of the Canadian economy.

An Evaluation of Three Alternative Fiscal Anchors for Canada

— Dec 6, 2022

An Evaluation of Three Alternative Fiscal Anchors for Canada is a new study that evaluates three fiscal rules that Canadian governments could adopt: (1) a debt reduction target, (2) a ceiling on the ratio of interest payments to revenues, and (3) a balanced budget rule (achieved by either spending restraint or tax increases).