Fraser Institute News Research: Canada had third-largest increase in total government debt (relative to the economy) among 40 high-income countries

VANCOUVER, May 15, 2025 /CNW/ - Since 2014, Canada's total government debt—including federal, provincial and local governments—has exploded, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"Over the last decade, the growth of Canada's government debt burden has outpaced virtually every other advanced country and contributed to a marked deterioration in the state of government finances," said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of The Deterioration of Canada's Finances Internationally.

How did this happen?

From 2014 to 2024, total government spending in Canada increased from 38.4 per cent of the economy to 44.7 per cent—the second-largest increase in government spending among 40 advanced countries (behind only Estonia) and the largest increase among G7 countries.

Federal and provincial governments in Canada borrowed money to fund this substantial spending increase. As a result, during that same 10-year period, Canada's total government debt increased from 85.5 per cent of the Canadian economy to 110.8 per cent—the third-largest increase among 40 advanced countries and the highest increase in the G7.

Consequently, among 40 advanced countries, Canada's total government debt increased from 14^th highest to 7^th highest over the decade.

"Taxpayers ultimately pay for government debt in the form of interest payments, which divert money away from key services, and future generations of Canadians could face higher taxes to pay for today's borrowing," said Grady Munro, policy analyst at the Fraser Institute and study co-author.

"If governments across Canada want to stop adding to their debt burdens, they must better control their spending," Fuss said.

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute

MEDIA CONTACTS: Jake Fuss, Director of Fiscal Studies, Fraser Institute, Grady Munro, Policy Analyst, Fraser Institute, To arrange media interviews or for more information, please contact: Mark Hasiuk, Senior Media Relations Specialist, 604-688-0221 ext. 517, [email protected]