Government debt burden increasing across Canada

From the Fraser Institute

By Tegan Hill, Jake Fuss and Spencer Gudewill

As governments across Canada unveil their 2025 budgets, outlining their tax and spending plans for the upcoming fiscal year, they have an opportunity to reverse the trend of deficits and increasing debt that has reigned in recent years.

Indeed, budget deficits, which fuel debt accumulation, have become a serious fiscal challenge for the federal and many provincial governments, primarily due to high levels of government spending. Since 2007/08—the final fiscal year before the financial crisis—combined federal and provincial net debt (inflation-adjusted) has nearly doubled from $1.2 trillion to a projected $2.3 trillion in 2024/25. And you can’t blame COVID, as combined federal and provincial net debt (inflation-adjusted) increased by nearly $600 billion between 2007/08 and 2019/20.

Federal and provincial net debt (inflation-adjusted) per person has increased in every province since 2007/08. As shown in the below chart, Newfoundland and Labrador has the highest combined (federal and provincial) debt per person ($68,516) in 2024/25 followed by Quebec ($60,565) and Ontario ($60,456). In contrast, Alberta has the lowest combined debt per person ($41,236) in the country. Combined federal and provincial net debt represents the total provincial net debt, and the federal portion allocated to each of the provinces based on a five-year average (2020-2024) of their population as a share of Canada’s total population.

The combined federal and total provincial debt-to-GDP ratio, an important fiscal indicator that compares debt with the size of the overall economy, is projected to reach 75.2 per cent in 2024/25. By comparison, the ratio was 53.2 per cent in 2007/08. A rising debt-to-GDP ratio indicates government debt has grown at an unsustainable rate (in other words, debt levels are growing faster than the economy). Among the provinces, the combined federal-provincial debt-to-GDP ratio is highest in Nova Scotia (92.0 per cent) and lowest in Alberta (42.2 per cent). Again, the federal debt portion is allocated to provinces based on a five-year average (2020-2024) of their population as a share of Canada’s total population.

Interest payments are a major consequence of debt accumulation. Governments must make interest payments on their debt similar to households that must pay interest on mortgages, vehicles or credit card spending. When taxpayer money goes towards interest payments, there’s less money available for tax cuts or government programs such as health care and education.

Interest on government debt (federal and provincial) costs each Canadian at least $1,930 in 2024/25. The amount, however, varies by province. Combined interest costs per person are highest in Newfoundland and Labrador ($3,453) and lowest in Alberta ($1,930). Similar to net debt, combined federal and provincial interest costs are represented by the total of the provincial and federal portion with the federal portion allocated to each of provinces based on a five-year average (2020-2024) of their population as a share of Canada’s total population.

Debt accumulation comes with consequences for everyday Canadians as more and more taxpayer money flows towards interest payments rather than tax relief or programs and services. This budget season, federal and provincial governments should develop long-term plans to meaningfully address the growing debt problem in Canada.

Up Next

New climate plan simply hides the costs to Canadians

Don't Miss

Trump HHS officially declares only two sexes: ‘Back to science and common sense’

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

UK finally admits clear evidence linking Pakistanis and child grooming gangs

Business / 2 hours ago

Trump family announces Trump Mobile: Made in America, for America

conflict / 3 hours ago

Trump leaves G7 early after urging evacuation of Tehran

Business

Trump family announces Trump Mobile: Made in America, for America

Published on June 17, 2025

Todayville

MxM News

Quick Hit:

On the 10-year anniversary of Donald Trump’s iconic campaign launch, the Trump family announced the debut of Trump Mobile, a new wireless company offering American-built smartphones, 5G coverage, and a values-driven alternative to Big Tech carriers.

Key Details:

Donald Trump Jr. and Eric Trump introduced Trump Mobile’s flagship service Monday, calling it a “transformational” alternative aimed at “our nation’s hardest-working people.”
The “47 Plan,” priced at $47.45/month, offers unlimited talk, text, and data, free international calls to U.S. military families, telehealth, roadside assistance, and no credit checks.
Trump Mobile’s customer support is fully U.S.-based and live 24/7—“not automated,” the company says—while a new American-made “T1 Phone” is slated for release in August.

Diving Deeper:

Marking ten years since President Donald Trump descended the golden escalator to launch his first campaign, the Trump Organization on Monday announced its boldest private sector move yet: Trump Mobile.

Flanked by company executives, Donald Trump Jr. and Eric Trump unveiled the new cellular service, touting it as a patriotic, people-first alternative to legacy providers. “We’re building on the movement to put America first,” Trump Jr. said in a statement. “We will deliver the highest levels of quality and service.”

The cornerstone of Trump Mobile is the 47 Plan. Offered for $47.45/month, the plan includes unlimited data, full 5G coverage across all three major carriers, and a suite of benefits tailored to middle-class families, truckers, veterans, and anyone tired of paying premiums to companies that don’t share their values.

Among the key perks: 24/7 American-based customer service (with “real people,” not bots), comprehensive device protection, roadside assistance through Drive America, and telehealth services including mental health support and prescription delivery. Most notably, the plan includes free international calling to over 100 countries—an effort the Trump family says honors U.S. military families stationed abroad.

“We’re especially proud to offer free long-distance calling to our military members and their families,” said Eric Trump. “Those serving overseas should always be able to stay connected to the people they love back home.”

Unlike traditional providers, Trump Mobile advertises no contracts and no credit checks, appealing to a demographic long underserved by mainstream telecom giants. “Hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on,” Eric Trump added.

The company is also preparing to launch the T1 Phone in August—a sleek, gold smartphone “engineered for performance” and “proudly designed and built in the United States.” With that, the Trump Organization is not just entering the mobile market—it’s staking a claim as a direct competitor to Apple and Samsung.

Business

Carney praises Trump’s world ‘leadership’ at G7 meeting in Canada

Published on June 16, 2025

Todayville

From LifeSiteNews

By Anthony Murdoch

Canada’s prime minister said it was a ‘great honor’ to host the U.S. president and praised him for saying Canada wants to work with the U.S. ‘hand-in-hand.’

During the second day of the G7 leaders meeting in the Kananaskis area in Alberta, Canadian Prime Minister Mark Carney praised U.S. President Donald Trump’s world “leadership” despite saying many negative things about him during his election campaign.

While speaking to reporters Monday, Trump hinted that a new trade deal between Canada and the United States was potentially only “weeks” away. This came after a private meeting with Carney before the official G7 talks commenced.

“We’ve developed a very good relationship. And we’re going to be talking about trade and many other things,” Trump told reporters.

Carney was less vocal, however. He used the opportunity to tell reporters he was happy Trump came to his country for the G7 meeting, saying it was a “great honor” to host him.

“This marks the 50th birthday of the G7, and the G7 is nothing without U.S. leadership,” Carney told reporters.

He then spoke about Trump’s “personal leadership” on world issues and praised him for saying Canada wants to work with the U.S. “hand-in-hand.”

Carney ran his election campaign by claiming the Conservative Party would bow to Trump’s demands despite the fact that the party never said such things.

During his federal election campaign, Carney repeatedly took issue with Trump and the U.S. that turned into an anti-American Canadian legacy media frenzy.

However, the reality is, after Carney won the April 28 federal election, Trump praised him, saying, “Canada chose a very talented person.”

Trump has routinely suggested that Canada become an American state in recent months, often making such statements while talking about or implementing trade tariffs on Canadian goods.

As for Carney, he has said his government plans to launch a “new economy” in Canada that will involve “deepening” ties to the world.