Fraser Institute News Release: Canadians in every province will pay more than $1,300 per person in 2022-23 on government interest costs amounting to $68.6 billion

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VANCOUVER, British Columbia, Feb. 02, 2023 (GLOBE NEWSWIRE) — Canadians in every province will pay more than $1,300 per person in government interest costs in 2022-23, a new study published by the Fraser Institute, an independent one, finds partisan Canadian public policy think tank.

“Interest has to be paid on national debt, and the more money governments spend on interest payments, the less money there is available for the programs and services that Canadians care about,” said Jake Fuss, Associate Director of Financial Studies at the Fraser Institute and author from Interest Cost on Federal and Provincial Debt for Canadians, 2023 Edition.

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The study finds that taxpayers across Canada will pay a combined $68.6 billion in interest payments on federal and provincial debt in 2022.

The federal government will spend $34.7 billion on debt servicing in 2022-23, more than the government expects to spend on childcare benefits ($29.4 billion) and employment insurance benefits ($24.8 billion). .

Nationally, the combined federal and provincial interest expense in Newfoundland and Labrador is the highest in the country at $2,727 per person. Quebec, Canada’s second most populous province, is the second highest at $2,110 per person.

Meanwhile, the total interest expense for Albertans ($6.7 billion) is more than provincial spending on physicians this year, and the combined federal and provincial interest expense for British Columbians ($7.4 billion) is equal almost the province’s spending on its social services this year.

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“Even before the COVID-19 pandemic and recession, governments across Canada and in Ottawa were piling up large amounts of debt, and that debt is imposing a real cost on Canadian taxpayers in the form of interest payments,” Fuss said.

“Interest payments across the country are significant, and that takes money away from other important priorities.”

MEDIA CONTACT:
Jake Fuss, Associate Director, Financial Studies
Fraser Institute

To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
(604) 688-0221 ext. 721
[email protected]

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The Fraser Institute is an independent Canadian public policy research and education organization with offices in Vancouver, Calgary, Toronto and Montreal and is connected to a global network of think tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and fully communicating the impact of government policies, entrepreneurship and decisions on their well-being. In order to maintain the institute’s independence, it does not accept any grants from governments or research contracts. Visit www.fraserinstitute.org