Ontarians will pay $27 billion on interest costs in 2022—nearly equivalent to what the province will spend on hospitals

TORONTO—Ontarians will spend more on federal and provincial interest costs in 2022-23 than what the province spends on hospitals, finds a new study published 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 Jake Fuss, associate director of fiscal studies at the Fraser Institute and author of Federal and Provincial Debt Interest Costs for Canadians, 2023 edition.

The study finds that taxpayers across Canada will pay a total of $68.6 billion on interest payments for the federal and provincial debts this year alone.

In Ontario, taxpayers will pay $27 billion in federal and provincial interest costs, which is nearly equivalent to what the provincial government will spend on hospitals ($30.4 billion).

On a per person basis, each Ontarian will pay $1,790 in interest this year to service the federal and provincial debt. That’s more than $7,000 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 Fuss.

“Interest payments for Ontario taxpayers are substantial, and that takes money away from other important priorities.”

Media Contact:

Jake Fuss, Associate Director, Fiscal Studies, Fraser Institute

To arrange media interviews or for more information, please contact:

Drue MacPherson, Fraser Institute

drue.macpherson@fraserinstitute.org

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