“This high level of deficit-financed spending will have to be repaid eventually, and that will have implications for future taxpayers who will face tax hikes to pay for today’s spending.”
The ‘new normal’ of federal spending is at unprecedented levels; will exceed $13,000 per person this year
VANCOUVER— Per-person federal program spending is expected to reach a minimum of $13,032 in 2021/22 (adjusted for inflation), which is 34.8 per cent higher than in 2019, pre-COVID, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
Prior to the recent election, the federal government’s spending plans would have resulted in per person spending of $12,695. However, the Liberals proposed additional spending in the election that will bring per-person spending to $13,032 in 2021/22, and the NDP, the Liberals’ likely governing partner, proposed even higher spending that would result in per-person spending reaching $13,735.
