By Fraser Institute ——Bio and Archives--March 26, 2024
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VANCOUVER—The combined size of the federal, provincial, and municipal governments increased in all but two provinces over the 2007 to 2022 period (relative to the sizes of their economies), finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The size of government increased in eight of ten provinces and the country as a whole over the last decade-and-a-half,” said Alex Whalen, associate director at the Fraser Institute and co-author of The Size of Government in Canada in 2022.
The study measures federal, provincial, and local government spending in each province as a share of the economy (GDP) from 2007 to 2022, the most recent year of comparable data.
It finds that government size grew in every province except Prince Edward Island and Saskatchewan during that period. In 2022, the size of government relative to the economy as a whole across Canada ranged from a low of 26.8 per cent in Alberta to a high of 63 per cent in Nova Scotia, and was 40.5 of Canada’s total economy.
Previous research has shown that the size of government (as a share of the economy) to maximize economic growth and social progress is between 26 and 30 per cent of the economy (GDP). When governments exceed that size, it imposes negative effects on the economy, such as crowding out private sector investment, but without providing proportionate benefits such as greater social progress.
“It’s important to understand just how much governments across Canada have grown in recent years, and what impact that might have on our economy moving forward,” said Jake Fuss, director of fiscal policy at the Fraser Institute and co-author.
| Province | 2007 | 2022 |
|---|---|---|
Newfoundland and Labrador | 38.7% | 44.1% |
Prince Edward Island | 61.6% | 58.3% |
Nova Scotia | 56.9% | 63.0% |
New Brunswick | 52.7% | 57.6% |
Quebec | 47.4% | 49.8% |
Ontario | 35.8% | 40.1% |
Manitoba | 45.0% | 49.4% |
Saskatchewan | 37.7% | 32.8% |
Alberta | 22.4% | 26.8% |
British Columbia | 34.8% | 35.6% |
Media Contact:
Jake Fuss, Director, Fiscal Studies, Fraser Institute
Alex Whalen, Associate Director, Atlantic Canada Prosperity Initiative, 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
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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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