Government Spending

Repeating the Past: Provinces Accept Federal Money at their Peril

— Jun 6, 2023

Repeating the Past: Provinces Accept Federal Money at Their Peril draws on the experience of Canada in the 1990s, when the federal government reformed and reduced transfers to the provinces to tackle the federal deficit and mounting debt—and how that comparison can be used to inform the decisions of policymakers today.

Global Aftermath: The Economic and Fiscal Effects of COVID in Canada and the World

— May 11, 2023

Global Aftermath: The Economic and Fiscal Effects of COVID in Canada and the World finds that during the pandemic, despite high levels of government spending and debt accumulation, Canada’s economy underperformed compared to most other advanced countries.

How Provincial Governments Respond to Fiscal Shocks and Federal Transfers

— May 2, 2023

How Provincial Governments Respond to Fiscal Shocks and Federal Transfers is a new study that finds despite misperceptions that government deficits have no cost, higher deficit-financed spending by provincial governments over the past 50 years has, in fact, led to higher taxes and higher debt-servicing costs for taxpayers.

Comparing Government and Private Sector Compensation in Canada, 2023 Edition

— Apr 18, 2023

Comparing Government and Private Sector Compensation in Canada, 2023 Edition, finds that government employees across Canada—including federal, provincial and municipal workers—were paid 8.5 per cent higher wages, on average, than workers in the private sector in 2021, the most recent year of available comparable data from Statistics Canada’s Labour Force Survey.

Canada’s Fiscal Policy Has Undermined Efforts to Tackle Inflation

— Apr 6, 2023

Canada’s Fiscal Policy Has Undermined Efforts to Tackle Inflation finds that the federal government’s decision to increase already high levels of spending and continued budget deficits will hinder the Bank of Canada’s efforts to tame inflation.

Nova Scotia Premiers and Provincial Government Spending

— Mar 21, 2023

Nova Scotia Premiers and Provincial Government Spending is a new study that reviews annual per-person program spending (inflation-adjusted) by Nova Scotia premiers from 1965 to 2021, finding that the highest single year of per-person spending on record was under Premier Robert Stanfield.

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Recent Government Spending Commentaries and Blog Posts

Provinces accept federal money at their peril

Tegan Hill, Milagros Palacios

Appeared in the Toronto Sun, June 7, 2023

Rising interest rates will put additional pressure on federal finances.

The ‘corporate welfare bums’ are back in business

Tegan Hill, Matthew D. Mitchell

Appeared in the Ottawa Citizen, May 31, 2023

The Volkswagen handout prompted automaker Stellantis to halt construction of an electric vehicle battery factory.

Here’s why governments should avoid tit-for-tat subsidy wars

Steven Globerman

Appeared in the Ottawa Sun, May 31, 2023

Policymakers should make business and personal income taxes more competitive and reduce the costs of regulation.

New Brunswick government should cut corporate welfare to generate tax relief

Alex Whalen, Tegan Hill

Appeared in the Moncton Times & Transcript, May 24, 2023

Provincial government subsidies total more than $100 million per year.

Stellantis ‘deal’ underscores intrinsic problems with corporate welfare

Tegan Hill, Matthew D. Mitchell

Appeared in the Toronto Star, May 22, 2023

Federal, provincial and local governments spent more than $352 billion subsidizing firms from 2007 to 2019.

Federal government wreaking child-care havoc across Canada

Matthew Lau

Appeared in the National Post, May 19, 2023

Some daycare centres are shutting down their operations.

Federal government wants to renew flawed equalization formula

Alex Whalen

Appeared in the Financial Post, May 17, 2023

Payments to recipient provinces are increasing even as the gap between richer and poorer provinces shrinks.

Governments in Canada spent more than $350 billion on corporate welfare

Tegan Hill, Joel Emes

Appeared in National Newswatch, May 3, 2023

Government should help foster a pro-growth environment that gives all businesses the opportunity to thrive.

Ottawa’s corporate welfare won’t spur economic growth

Tegan Hill, Jason Clemens

Appeared in the Toronto Sun, May 3, 2023

The federal government plans to spend an estimated $13 billion on subsidies for Volkswagen’s Ontario battery plant.

Ottawa’s approach to spending—what goes up must continue going up

Jake Fuss, Milagros Palacios

Federal program spending is expected to grow by $132.7 billion—or 41 per cent—between 2014/15 and 2023/24.