Study
| EST. READ TIME 2 MIN.Canadian Government Debt 2006
The net direct debt of all three levels of government in Canada fell from $832.7 billion to $798.4 billion between 1999/2000 and 2003/2004. This is a small drop compared to the growth since 1990/1991 when net debt was $533 billion. There are several reasons that even a small reduction in debt is good news. First, governments have begun to balance their books and some have started paying down their debt. Second, continued economic growth will help reduce the ratio of debt to gross domestic product (GDP), currently at 65.6%. Third, a constant or declining debt stock will demand a smaller portion of government revenues. As a result, some of the 10.7% of revenues currently being spent on interest charges can be used for further debt relief or tax cuts.
The bad news is that the $34.3 billion drop in debt was more than offset by increases in other liabilities such as program obligations, which grew significantly from 1999 to 2003. The net increase in total liabilities over this period was $259.4 billion. The growth in obligations under programs such as the Canada and Quebec Pension Plans, the Old Age Security, and the Medicare system has been a focus of this debt study for many years. Specifically, the concern lies in the size of these obligations and what this implies for the future health of these programs. Largely due to increases in program obligations, in 2003/2004 federal, provincial, and local liabilities added up to $171,032 for each Canadian taxpayer or $85,525 for each Canadian citizen.
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Niels Veldhuis
President, Fraser InstituteNiels Veldhuis serves as President of the Fraser Institute, Canada’s most influential think tank.In his over 20-plus-year career in publicpolicy, Niels has authored six books and more than 50 peer-reviewed studies on a wide range of economic topics. In 2011, he was awarded (along with his co-authors) the prestigious Sir Antony Fisher International Memorial Award for the best-selling book, The Canadian Century.Highly regarded for his opinions and perspectives on major economic and social issues, Niels appears regularly in the media across Canada and the United States. He has written hundreds of commentaries that have appeared in over 50 newspapers, including the Globe and Mail, Wall Street Journal, National Post, and The Economist.Known for his ability to explain matters of economics and government policy in a down-to-earth and easily understood manner, Niels travels widely across North America. His speaking engagements extend to diverse audiences, including business groups, corporate gatherings, community organizations, and students.Niels has had the privilege of sharing the stage and moderating discussions with prominent business and political leaders from around the world. Notable individuals include Prime Minister Stephen Harper, Prime Minister Brian Mulroney, and BC Premier Gordon Campbell. He has also moderated discussions with distinguished Canadian journalists such as Chantal Herbert, Andrew Coyne, and Rex Murphy, as well as diplomats such as Canada’s Ambassador to China and Israel’s Ambassador to Canada. Niels moderated a discussion between United States Presidents Bill Clinton and George W. Bush in 2011 and has facilitated conversations with impactful authors like Mosab Hassan Yousef (author of "Son of Hamas") and Lord Conrad Black.Niels Veldhuis is an alumnus of Simon Fraser University, was one of Vancouver’s Top 40 under 40 by Business in Vancouver in 2010, and is a member of the Young Presidents’ Organization (YPO).… Read more -
Milagros Palacios
Director, Addington Centre for Measurement, Fraser InstituteMilagros Palacios is the Director for the Addington Centre for Measurement at the Fraser Institute. She holds a B.S. in IndustrialEngineering from the Pontifical Catholic University of Peru and a M.Sc. in Economics from the University of Concepcion, Chile. Ms. Palacios has studied public policy involving taxation, government finances, investment, productivity, labour markets, and charitable giving, for nearly 10 years. Since joining the Institute, Ms. Palacios has authored or coauthored over 70 comprehensive research studies, 70 commentaries and four books. Her recent commentaries have appeared in major Canadian newspapers such as the National Post, Toronto Sun, Windsor Star, and Vancouver Sun.… Read more