Canada's federal-provincial debt to hit $1.5 trillion says Fraser Institute report
The combined total of Canadian federal and provincial government debt will reach $1.5 trillion in 2019/2020 according to a new report.
Fraser Institute economist Jake Fuss is the author of the report and says that since 2007/2008, just before the Great Recession, debt was at $837 billion but the projected increase continues the trend of a growing debt burden for Canadian taxpayers, which will inevitably lead to higher taxes.
“Government debt—federally and in every province—has grown over the past 12 years, creating serious fiscal challenges for Ottawa and many provincial governments,” said Jake Fuss, economist at the Fraser Institute and co-author of The Growing Debt Burden for Canadians.
In 2019/2020 the combined debt will equal 64.3% of the Canadian economy and is the equivalent of $39,483 for every Canadian.
Ontario is the province with the highest combined debt at $668.5 billion and has the second-highest combined debt per person at $45,891. The highest is Newfoundland and Labrador at $48,478.
“As budget season approaches, governments across Canada should remember that deficits and debt today ultimately mean higher taxes tomorrow,” Fuss said.
Canada's combined federal-provincial debt will reach $1.5 trillion in 2019/20, with Ontario debt the highest among provinces. https://t.co/wOkgq910Rk #cdnpoli pic.twitter.com/iDFy5bGPXa
— The Fraser Institute (@FraserInstitute) January 16, 2020
