A large government debt burden can negatively affect economic growth.
Government Spending & Taxes
Government workers in Atlantic Canada received 11.9 per cent more (on average) in wages than their private-sector counterparts.
The one-time payment to seniors will cost an estimated $2.5 billion.
Total provincial government deficits will reach an estimated $63.0 billion this year.
Non-renewable resource revenue accounted for up to 27 per cent of total provincial government revenue.
After the COVID crisis has passed, Ottawa should find ways to encourage private-sector investment and hiring.
Ottawa raised personal income tax rates on Canadian workers.
The Ford government projected a deficit of $20.5 billion for 2020-21.
The lack of innovation in the government sector is rooted in the differences between the incentives and disciplines imposed by customers on the government and private sectors.
The Trudeau government has run five consecutive deficits since taking office in 2015 and is expected to have accumulated approximately $84.3 billion in federal debt—$713.2 billion total—by the end of 2019-20.
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