Government spending represented 40.4 per cent of the country's economy in 2019, up from 37.4 per cent in 2007.
size of government
When tax rates increase, people often change their economic behaviour in ways that shrink the targeted tax base.
In the last year of reliable data before the pandemic, government spending in Nova Scotia represented 60.2 per cent of the economy.
The top 20 per cent of income-earning families in Canada pay more than half of total taxes.
According to estimates, economic growth is maximized when government spending is about 26 per cent of GDP.
Subnational jurisdictions of around 9.5 million people seem to be the fastest-growing economies.
The string of deficits will increase Nova Scotia’s government debt by nearly 40 per cent from 2019/20 to 2024/25.