TORONTO—The Ontario government will spend more on interest costs in 2020-21 than post-secondary education, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.
“Interest must be paid on government debt, and the more money governments spend on interest payments the less money is available for the programs and services that matter to Ontarians,” said Steve Lafleur, a senior policy analyst at the Fraser Institute and author of Federal and Provincial Debt Interest Costs for Canadians.
Taxpayers across Canada will pay a total of $49.6 billion—or about $4 billion a month—in interest payments for the federal and provincial debts
The study finds that taxpayers across Canada will pay a total of $49.6 billion—or about $4 billion a month—in interest payments for the federal and provincial debts this year alone.
In Ontario, taxpayers will pay $12.5 billion in provincial interest costs alone, which is more than the provincial government will spend on post-secondary education ($10.7 billion).
On a per person basis, each Ontarian will pay $1,375 in interest this year to service the federal and provincial debt. That’s more than $5,000 for a family of four.
“Even before the COVID-19 pandemic and recession, governments at Queen’s Park and in Ottawa have been racking up large debts, and this debt imposes real costs on Ontario taxpayers,” said Jake Fuss, a senior economist at the Fraser Institute and study co-author.
“Interest payments for Ontario taxpayers are substantial, and that takes money away from other important priorities.”
Media Contact:
• Steven Lafleur, Senior Policy Analyst, Fraser Institute
• Jake Fuss, Senior Economist, Fraser Institute
To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
drue.macpherson@fraserinstitute.org
The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.
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TORONTO—The Ontario government will spend more on interest costs in 2020-21 than post-secondary education, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.
“Interest must be paid on government debt, and the more money governments spend on interest payments the less money is available for the programs and services that matter to Ontarians,” said Steve Lafleur, a senior policy analyst at the Fraser Institute and author of Federal and Provincial Debt Interest Costs for Canadians.
