The Cost of Business Subsidies in Canada
In the study, business subsides include unrequited government transfers to businesses but exclude other forms of government support such as loan guarantees and direct investment.
More specifically, government spending on business subsidies more than doubled (after adjusting for inflation) from $24.5 billion in 2007 to $52 billion in 2022 (the latest year of available data).
Total provincial subsidies experienced the highest increase over the period growing from $13.2 billion in 2007 to $35.4 billion in 2022. Federal subsidies increased from $7.4 billion to $11.2 billion over the period.
“Rather than give preferential treatment to certain companies and industries, it’s high time Canada reduce business taxes and help foster a pro-economic growth environment that gives all businesses the opportunity and incentives to succeed,” said Jake Fuss, director of fiscal policy at the Fraser Institute and study co-author.
Media Contact:
Jake Fuss, Director, Fiscal Studies, Fraser Institute
Tegan Hill, Associate 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
