Canada’s combined federal and provincial government debt is projected to nearly double from pre-2008 financial crisis levels, reaching an estimated $2.44 trillion, according to a new report from the Fraser Institute.
The report, titled The Growing Debt Burden for Canadians: 2025 Edition, says combined government net debt has ballooned from roughly $1.21 trillion in 2007/08 to more than $2.3 trillion today, with debt continuing to climb.
Researchers warn that the debt load is growing faster than the economy itself. The combined federal-provincial debt-to-GDP ratio has risen from 53.2 percent in 2007/08 to nearly 75 percent.
“Government debt — federally and in most provinces — has grown substantially over the past 17 years,” said Fraser Institute fiscal studies director Jake Fuss, co-author of the report.
The report measures “net debt,” meaning total government liabilities minus financial assets held by governments. The study argues that persistent deficits today will translate into higher taxes and higher debt servicing costs in the future.
Debt interest payments are already becoming a major expense. Another Fraser Institute study estimates federal and provincial governments will spend a combined $92.5 billion on debt interest payments in 2024/25 alone.
On a per-person basis, the combined debt burden varies widely across the country. Alberta has the lowest combined debt per person at roughly $40,939, while Newfoundland and Labrador has the highest at nearly $68,861 per resident. Quebec and Ontario also rank among the most indebted provinces per capita.
The Fraser Institute describes itself as an independent, non-partisan public policy think tank.
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