Federal and Provincial Debt-Interest Costs for Canadians, 2023 edition
— Published on February 2, 2023
- In recent years, deficit spending and growing government debt have become a trend for many Canadian governments. Like households, governments are required to pay interest on their debt.
- In aggregate, the provinces and federal government are expected to spend $68.6 billion on interest payments in 2022/23.
- Residents of Newfoundland & Labrador face by far the highest combined federal-provincial interest payments per person ($2,727). Quebec, Canada’s second most populous province, is the next highest at $2,110 per person.
- The federal government will spend $34.7 billion on debt servicing charges in 2022/23, which is more than what the government expects to spend on child care benefits ($29.4 billion) and employment insurance benefits ($24.8 billion).
- Ontarians are projected to spend $27.0 billion on combined federal and provincial interest costs in 2022/23, which is nearly equivalent to the amount the province will spend on hospitals this year.
- Meanwhile, total expenditures on interest costs for Albertans ($6.7 billion) is more than what the province will spend on physicians this year. Combined federal-provincial interest costs for British Columbians ($7.4 billion) are roughly equivalent to what the province expects to spend on its social services this year.
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