Ontarians will pay $36.2 billion this year in interest on government debt

TORONTO—Ontarians will spend nearly as much on federal and provincial government debt interest costs ($36.2 billion) in 2024/25 as what the province spends on K-12 education ($38.4 billion), 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, director of fiscal studies at the Fraser Institute and co-author of Federal and Provincial Debt Interest Costs for Canadians, 2025 edition.

The study finds that taxpayers across Canada will pay a total of $92.5 billion on interest payments for the federal and provincial government debts in (fiscal year) 2024/25 alone.

On a per person basis, debt interest payments on federal and provincial government debt are $2,242 per Ontarian. That’s nearly $9,000 for a family of four.

Nationally, combined federal and provincial interest costs ranged from highest in the country in Newfoundland and Labrador at $3,432 per person to lowest in Alberta at $1,937 per person.

“As Queen’s Park and Ottawa continue to rack up large debts, this debt imposes real costs on Ontario taxpayers in the form of ongoing interest payments,” said Tegan Hill, study co-author and a senior economist with the Institute.

“Government debt interest payments in Ontario are substantial, and money that goes to creditors is money that is not available for other important priorities.”

Media Contact:
Tegan Hill, Director, Alberta Policy, Fraser Institute

To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 ext. 721
drue.macpherson@fraserinstitute.org