Government Spending

Fiscal Federalism and the Dependency of Atlantic Canada

— Jan 28, 2021

Fiscal Federalism and the Dependency of Atlantic Canada is a new study that examines Atlantic Canada’s dependency on fiscal transfers from Ottawa, and highlights how the region is vulnerable to any significant changes in fiscal federalism. The study finds that from 2007 to 2019, federal spending (including Employment Insurance, equalization, health care, and various other subsidies and programs) in Atlantic Canada equaled more than a quarter—27.5 per cent—of the region’s economy

Promise and Performance: Recent Trends in Government Expenditures on Indigenous Peoples

— Jan 26, 2021

Promise and Performance: Recent Trends in Government Expenditures on Indigenous Peoples finds that, according to federal budget projections, from fiscal year 2015-16 to 2021-22, federal spending on Indigenous programs will increase by 50 per cent—from $11 billion to more than $17 billion—despite evidence that more money won’t solve the chronic problems in First Nations communities.

Education Spending in Public Schools in Canada, 2021 Edition

— Jan 5, 2021

Education Spending in Public Schools in Canada, 2021 Edition finds that the spending in Canadian public schools is up 13 per cent, or $8.2 billion in nominal spending, since 2013/2014. After adjusting for inflation and changes in enrolment over the same five-year period, per-student spending on public schools increased in eight out of 10 provinces in Canada.

The Great Convergence: Measuring the Fiscal Capacity Gap Between “Have” and “Have-Not” Provinces

— Dec 3, 2020

The Great Convergence: Measuring the Fiscal Gap Between “Have” and “Have-Not” Provinces

The Great Convergence: Measuring the Fiscal Capacity Gap Between “Have” and “Have-Not” Provinces is a new study that finds the gap between the ability of Canada’s richer and poorer provinces to raise revenues is shrinking rapidly. If Alberta’s fiscal capacity gap continues to shrink relative to the rest of Canada, the province could soon become eligible for equalization transfers, which would affect transfers to other so-called “have not” provinces.

An Evaluation of the Recent Performance of British Columbia’s Economy

— Dec 1, 2020

An Evaluation of the Recent Performance of British Columbia’s Economy finds that any downturn in B.C.'s housing sector will have serious consequences for the provincial economy.

The Distribution of the Canada Child Benefit by Family Type and Income Level

— Nov 26, 2020

The Distribution of the Canada Child Benefit by Family Type and Income Level, part three of an essay series on the Canada Child Benefit (CCB), finds that families with between $100,000 and $120,000 of annual household income received (on average) roughly the same increase in cash benefits from the new CCB program than families with less than $20,000 of income.

Recent Government Spending Commentaries and Blog Posts

New COVID spending may do more harm than good

Jake Fuss

Several businesses, particularly in the service industry, are struggling to find workers.

Trudeau’s record-high spending hasn’t translated into strong economic growth

Tegan Hill, Jake Fuss

During the Trudeau period, business investment actually declined by 0.2 per cent.

Alberta and Saskatchewan need new rules to save revenue

Tegan Hill, Jason Clemens

Appeared in the Edmonton Sun, September 29, 2021

Saskatchewan’s resource revenue will be roughly $360 million higher than initially projected in 2021/22.

The real election losers—balance sheet, health care, federalism

Jason Clemens, Milagros Palacios, Niels Veldhuis

Appeared in the National Post, September 28, 2021

On health-care wait times, Canada consistently ranks lowest among comparable countries with universal health care.

Before adding new programs, Ottawa should consider what Canadians already pay for health care

Bacchus Barua, Milagros Palacios

The Trudeau government will likely expand the scope of our public health-care system and Canadian families will pay even more for public health care every year.

New federal government can't continue debt binge

Jake Fuss

The new Liberal minority government should develop a credible plan to balance the budget and stop debt accumulation.

Despite smaller projected budget deficit, Albertans can’t afford to discount province’s fiscal challenges

Tegan Hill

Appeared in the Calgary Sun, September 22, 2021

A boost in projected revenues this year have reduced the expected deficit for 2021/22, but this will only provide a small amount of relief.

Next prime minister should cut spending to help the poor

Matthew Lau

Appeared in the Ottawa Sun, September 17, 2021

According to estimates, economic growth is maximized when government spending is about 26 per cent of GDP.

Next prime minister should eschew interventionist ‘industrial policy’

Matthew Lau

Appeared in the Calgary Sun, September 15, 2021

In the second quarter of 2021, real GDP per capita fell to 2.9 per cent below fourth quarter 2019 levels.

Spending on public schools increases across Canada while student results decline

Paige MacPherson

Appeared in the Toronto Sun, September 15, 2021

Between 2003 and 2018, Canada’s average PISA scores in math, science and reading declined.