Government Spending

Capital Investment in Canada: An International Comparison

— Oct 11, 2018

Capital Investment in Canada: An International Comparison finds that Canada’s anemic growth rate of capital investment—which has slowed to a 40-year low—has lagged behind growth rates in the United States and other developed countries in recent years. Investment growth has been especially weak in Canada’s business sector, particularly in the areas of machinery, equipment and intellectual property.

Capital Investment in Canada: Recent Behaviour and Implications

— Sep 13, 2018

Capital Investment in Canada: Recent Behaviour and Implications finds that the growth rate of overall investments in Canada—particularly in the important areas of equipment, machinery and intellectual property—has slowed to a 40-year low, negatively affecting living standards for workers and overall economic growth.

Subsidized Daycare—What British Columbia Can Learn from Quebec’s 20-Year Experiment

— Mar 22, 2018

Subsidized Daycare—What British Columbia Can Learn from Quebec’s 20-Year Experiment finds that policymakers in B.C. should learn from Quebec’s government-subsidized daycare program, which has proven costly for taxpayers, has not paid for itself and has experienced mixed child development outcomes.

Back on Track: How the Federal Liberals Can Deliver Their Promised Balanced Budget by 2019/20

— Feb 23, 2018

Back on Track: How the Federal Liberals Can Deliver Their Promised Balanced Budget by 2019/20 finds that a modest one per cent reduction in program spending—spread out over two years—would achieve budget balance. Incidentally, since coming into office in 2015, the federal Liberals have increased program spending by 20.1 per cent ($51 billion) in just three years.

Will British Columbia’s New NDP Government Abandon Past Spending Discipline?

— Feb 14, 2018

Will B.C.’s New NDP Government Abandon Past Spending Discipline? finds that British Columbia currently enjoys one of the strongest fiscal positions in Canada because of modest spending growth. In fact, over a 15-year period starting in 2001/02, successive provincial governments in B.C. increased spending, on average, 3.5 per cent annually—the lowest level of spending growth during that time period of any province.

Repeating Past Mistakes? Spending Restraint Critical for Ontario’s Fiscal Health

— Feb 6, 2018

Repeating Past Mistakes? Spending Restraint Critical for Ontario’s Fiscal Health finds that the Ontario government is ramping up program spending by more than $7 billion this year, or nearly six per cent—more than three times higher than the average increase in the years following the 2009 recession.

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Recent Government Spending Commentaries and Blog Posts

Three tricky points for equalization abolitionists

William Watson

For as long as equalization has existed (since 1957), Quebec has always received the largest payment.

Hampering resource development makes it harder for Quebec to end reliance on equalization

Ben Eisen

Closing the income gap with the rest of Canada will require Quebec’s government to work to attract more investment.

Quarterly update highlights danger of riding rickety revenue rollercoaster

Steve Lafleur, Elmira Aliakbari

The Notley government’s failure to restrain spending is quickly growing Alberta’s debt burden.

Government spending varies widely across major Ontario municipalities

Livio Di Matteo

Burlington spent nearly 17 per cent of tax-financed expenditure on “general government.”

Alberta racking up debt much faster than Ontario did

Ben Eisen, Steve Lafleur

Ontario spends about nine per cent of all revenue on government debt-service payments.

Quebec, Bombardier and the sunk cost fallacy

Vincent Geloso

Appeared in the National Newswatch, December 6, 2018

Bombardier has received billions in government aid.

Trudeau government handouts will stifle much-needed innovation in Canada’s media industry

Lydia Miljan

Appeared in the Vancouver Province, December 3, 2018

The Trudeau government will give nearly $600 million worth of new tax credits and incentives to Canada’s media industry.

Big deficits or slash-and-burn—the Ford government’s false choice

Ben Eisen

Appeared in the Ottawa Sun, November 28, 2018

A nominal total spending freeze would mean annual reductions in inflation-adjusted per-person spending of about three per cent.

The finance minister said what? Part 4

Jason Clemens, Jake Fuss, Milagros Palacios

The federal government expects the deficit in 2018-19 to reach $18.1 billion and grow next year to $19.6 billion.

No mistaking it now—the federal government has no interest in balancing the budget

Jake Fuss, Jason Clemens

Program spending this fiscal year will reach $320.2 billion.