Government Spending

The End of Spending Restraint in British Columbia

— Jan 4, 2023

The End of Spending Restraint in British Columbia finds that after a long period of relative spending restraint, the B.C. government significantly increased spending—even before any COVID-related spending began.

Measuring the Fiscal Performance of Canada's Premiers, 2022

— Nov 17, 2022

Measuring the Fiscal Performance of Canada's Premiers, 2022 is a new study that ranks Canadian premiers (seven current and four former) based on three fiscal policy categories: government spending, taxes, and deficits and debt up to the fiscal year 2021/22. Premiers who managed spending more prudently, balanced the budgets, and or paid down debt ranked higher.

Population and the Fiscal Outcomes of Subnational Jurisdictions

— Oct 20, 2022

Population and the Fiscal Outcomes of Subnational Jurisdictions is a new study that finds once a province or state exceeds a certain population size, the government’s role in the economy begins to grow.

Education Spending in Public Schools in Canada, 2022 Edition

— Oct 6, 2022

Education Spending in Public Schools in Canada, 2022 Edition finds that despite common misperceptions, spending on public schools across Canada increased in seven out of 10 provinces between 2012-13 and 2019-20, before COVID-related spending began.

Comparing per-Person Spending and Revenue in the Greater Toronto and Hamilton Area, 2009–2019

— Aug 25, 2022

Comparing per-Person Spending and Revenue in the Greater Toronto and Hamilton Area, 2009–2019 is a new study that finds across the 26 municipalities that constitute the GTHA, per person spending (adjusted for inflation) increased by 9.6 per cent between 2009 and 2019, and Toronto remained the highest spending municipality in 2019. Not surprisingly, there is a connection between high spending municipalities and high tax municipalities, as Toronto, the highest spending municipality was also the 3rd highest taxing municipality (total per person revenues adjusted for inflation) in 2019.

Adjusting for the Canada Child Benefit's Tax-Free Status

— Aug 18, 2022

Adjusting for the Canada Child Benefit’s Tax-Free Status finds that the federal government has shifted the share of overall spending on child benefits away from lower-income families to middle- and upper-income families—to an even greater degree than previously thought.

Recent Government Spending Commentaries and Blog Posts

Prime minister’s threat to grocery chains won’t solve food price problem

Jason Clemens, Milagros Palacios

Appeared in the Financial Post, September 21, 2023

A serious approach to food inflation would focus on reducing costs to producers and encouraging greater supply.

Government spending doesn’t buy happiness

Matthew Lau

Appeared in the Toronto Sun, September 6, 2023

Ottawa's child-care program simply shifted the form of care away from parents’ preference and towards the government-subsidized option.

Ottawa and Washington wasted many billions during COVID

Jake Fuss, Tegan Hill

Appeared in True North, Aug. 27, 2023

Overpayment recipients included 1,522 prisoners, 391 dead people and 434 children too young to be eligible.

Governments across Canada are spending us into economic misery

Matthew Lau

Appeared in the Financial Post, August 5, 2023

Business investment declined by 20 per cent in Canada from 2014 to 2021.

No, you won’t tame inflation with more government spending

Philip Cross

Appeared in the Financial Post, July 18, 2023

We’ve seen a steady erosion of per-capita GDP growth and persistent government deficits.

Liberals, Tories and NDP—they all love corporate welfare

Tegan Hill

Appeared in the Globe and Mail, July 8, 2023

In this year’s federal budget, the government earmarked $80 billion in corporate handouts to select industries.

Canada can’t meet NATO spending target without serious fiscal consequences

Jake Fuss

Appeared in the Toronto Sun, July 5, 2023

After recording eight consecutive budget deficits, the Trudeau government plans to run at least five more.

Taxpayers on the hook for more than $110 billion due to Ottawa’s COVID waste

Tegan Hill, Jake Fuss

Appeared in the Ottawa Sun, June 28, 2023

A significant portion of federal spending was mismanaged, poorly targeted, wasteful or simply excessive.

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.