The purpose of this report on the public liabilities of Canada is to provide Canadians with an accessible account of the total indebtedness of each of the provinces and of the federal government. It is a reminder of the extent of our indebtedness, how jurisdictions compare both nationally and internationally, and how the national comparisons are changing as time passes.

Governments in Canada spend approximately 20 percent of their total revenues servicing the public debt. The total stock of direct debt fell from $853 billion to $850 billion between 1996/1997 and 1997/1998. The federal budget is balanced and most of the provinces currently, or will shortly, have balanced budgets. A constant or declining stock of debt and growing national income will release an increasing fraction of revenues from servicing debt and allow it to contribute to future budget surpluses. We face a future in which the impact of government debt upon the economy can be considerably reduced. For this optimistic future to be realized, it is essential that governments and taxpayers continue to support a regime of fiscally responsible conduct. There are constant pressures on governments to deviate from a course of fiscal propriety as the unlimited demand for government programs collides with a limited capacity to raise tax revenues.

The purpose of this report on the public liabilities of Canada is to provide Canadians with an accessible account of the total indebtedness of each of the provinces and of the federal government. It is a reminder of the extent of our indebtedness, how jurisdictions compare both nationally and internationally, and how the national comparisons are changing as time passes.