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Canadians in every province will pay more than $1,750 per person in 2023-24 on government interest costs amounting to $81.8 billion

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From the Fraser Institute

By Jake Fuss and Grady Munro

Canadians in every province will pay more than $1,750 per person in 2023/24 on government interest costs, 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 Canadians,” said Jake Fuss, director of fiscal studies at the Fraser Institute and author of Federal and Provincial Debt Interest Costs for Canadians, 2024 edition.

The study finds that taxpayers across Canada will pay a total of $81.8 billion on interest payments for the federal and provincial debts this year alone. The federal government will spend $46.5 billion on debt servicing charges in 2023/24, which is more than the government expects to spend on childcare benefits ($31.2 billion) and almost as much as the Canada Health Transfer ($49.4 billion).

Nationally, Newfoundland and Labrador’s combined federal and provincial interest costs is the highest in the country at $3,225 per person. Manitoba is the next highest at $2,728 per person.

Meanwhile, total expenditures on interest costs for Albertans ($8.6 billion) and Ontarians ($31.5 billion) are nearly equivalent to expected spending on K-12 education in their respective provinces this year.

“Even before the COVID-19 pandemic and recession, governments across Canada and in Ottawa were racking up large debts, and this debt imposes real costs on Canadian taxpayers in the form of interest payments,” said Fuss. “Interest payments across the country are substantial, and that takes money away from other important priorities.”

  • In recent years, deficit spending and growing government debt have become a trend for many Canadian governments. Like households, governments are required to pay interest on their debt.
  • In aggregate, the provinces and federal government are expected to spend $81.8 billion on interest payments in 2023/24.
  • Residents in Newfoundland & Labrador face by far the highest combined federal-provincial interest payments per person ($3,225). Manitoba is the next highest at $2,728 per person.
  • The federal government will spend $46.5 billion on debt servicing charges in 2023/24, which is nearly what the government expects to spend on the Canada Health Transfer ($49.4 billion), and significantly more than it expects to spend on childcare benefits ($31.2 billion).
  • Combined federal-provincial interest costs in Ontario ($31.5 billion), Quebec ($20.3 billion), and Alberta ($8.6 billion) are nearly as much, or more than, what these provinces will spend on K-12 education in 2023/24.
  • Meanwhile, combined federal-provincial interest costs for British Columbians ($9.6 billion) are higher than what the province expects to spend on its social services this year.

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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 think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

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Storm clouds of uncertainty as BC courts deal another blow to industry and investment

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From the Fraser Institute

By Tegan Hill and Jason Clemens

Recent court decision adds to growing uncertainty in B.C.

A recent decision by the B.C. Court of Appeal further clouds private property rights and undermines investment in the province. Specifically, the court determined British Columbia’s mineral claims system did not follow the province’s Declaration on the Rights of Indigenous Peoples Act (DRIPA), which incorporated the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into law.

DRIPA (2019) requires the B.C. provincial government to “take all measures necessary to ensure the laws of British Columbia are consistent with the Declaration,” meaning that all legislation in B.C. must conform to the principles outlined in the UNDRIP, which states that “Indigenous peoples have the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired.” The court’s ruling that the provincial government is not abiding by its own legislation (DRIPA) is the latest hit for the province in terms of ongoing uncertainty regarding property rights across the province, which will impose massive economic costs on all British Columbians until it’s resolved.

Consider the Cowichan First Nations legal case. The B.C. Supreme Court recently granted Aboriginal title to over 800 acres of land in Richmond valued at $2.5 billion, and where such aboriginal title is determined to exist, the court ruled that it is “prior and senior right” to other property interests. Put simply, the case puts private property at risk in BC.

The Eby government is appealing the case, yet it’s simultaneously negotiating bilateral agreements that similarly give First Nations priority rights over land swaths in B.C.

Consider Haida Gwaii, an archipelago on Canada’s west coast where around 5,000 people live—half of which are non-Haida. In April 2024, the Eby government granted Haida Aboriginal title over the land as part of a bilateral agreement. And while the agreement says private property must be honoured, private property rights are incompatible with communal Aboriginal title and it’s unclear how this conflict will be resolved.

Moreover, the Eby government attempted to pass legislation that effectively gives First Nations veto power over public land use in B.C. in 2024. While the legislation was rescinded after significant public backlash, the Eby’s government’s continued bilateral negotiations and proposed changes to other laws indicate it’s supportive of the general move towards Aboriginal title over significant parts of the province.

UNDRIP was adopted by the United Nations in 2007 and the B.C. Legislature adopted DRIPA in 2019. DRIPA requires that the government must secure “free, prior and informed consent” before approving projects on claimed land. Premier Eby is directly tied to DRIPA since he was the attorney general and actually drafted the interpretation memo.

The recent case centres around mineral exploration. Two First Nations groups—the Gitxaala Nation and the Ehattesaht First Nation—claimed the duty to consult was not adequately met and that granting mineral claims in their land “harms their cultural, spiritual, economic, and governance rights over their traditional territories,” which is inconsistent with DRIPA.

According to a 2024 survey of mining executives, more uncertainty is the last thing B.C. needs. Indeed, 76 per cent of respondents for B.C. said uncertainty around protected land and disputed land claims deters investment compared to only 29 per cent and 44 per cent (respectively) for Saskatchewan.

This series of developments have and will continue to fuel uncertainty in B.C. Who would move to or invest in B.C. when their private property, business, and investment is potentially at risk?

It’s no wonder British Columbians are leaving the province in droves. According to the B.C. Business Council, nearly 70,000 residents left B.C. for other parts of Canada last year. Similarly, business investment (inflation-adjusted) fell by nearly 5 per cent last year, exports and housing starts were down, and living standards in the province (as measured by per-person GDP) contracted in both 2023 and 2024.

B.C.’s recent developments will only worsen uncertainty in the province, deterring investment and leading to stagnant or even declining living standards for British Columbians. The Eby government should do its part to reaffirm private property rights, rather than continue fuelling uncertainty.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jason Clemens

Executive Vice President, Fraser Institute
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Inflation Reduction Act, Green New Deal Causing America’s Energy Crisis

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From the Daily Caller News Foundation

By Greg Blackie

Our country is facing an energy crisis. No, not because of new demand from data centers or AI. Instead, it’s because utilities in nearly every state, due to government imposed “renewable” mandates, self-imposed mandates, and the supercharging of the Green New Scam under the so-called “Inflation Reduction Act,” have been shutting down vital coal resources and building out almost exclusively intermittent and costly resources like solar, wind, and battery storage.

President Donald Trump understands this, and that is why on day one of his administration he declared an Energy Emergency. Then, a few months later, the President signed a trio of Executive Orders designed to keep our “beautiful, clean coal” burning and providing the reliable, baseload, and affordable electricity Americans have benefitted from for generations.

Those orders have been used to keep coal generation online that was slated to shut down in Michigan and will potentially keep two units operating that were scheduled to shut down in Colorado this December. In Arizona, however, the Cholla Power Plant in Navajo County was shuttered by the utility just weeks after Trump explicitly called out the plant for saving in a press conference.

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Unlike states with green mandates, Arizona essentially has none. Instead, our utilities, like many around the country, have self-imposed commitments to go “Net Zero” by 2050. To meet that target, they have planned to shut down all coal generation in the state by 2032 and plan to build out almost exclusively solar, wind, and battery storage to meet an expected explosive growth in demand, at a cost of tens of billions of dollars. So it is no surprise that like much of the rest of the country, Arizona is facing an energy crisis.

Taking a look at our largest regulated utilities (APS, TEP, and UNS) and the largest nonprofit utility, SRP, future plans paint an alarming picture. Combined, over the next 15 years, these utilities expect to see demand increase from 19,200 MW to 28,000 MW. For reference, 1,000 MW of electricity is enough to power roughly 250,000 homes. To meet that growth in demand, however, Arizonans will only get a net increase of 989 MW of reliable generation (coal, natural gas, and nuclear) compared to 22,543 MW (or nearly 23 times as much) of intermittent solar, wind, and battery storage.

But what about all of the new natural gas coming into the state? The vast majority of it will be eaten up just to replace existing coal resources, not to bring additional affordable energy to the grid. For example, the SRP board recently voted to approve the conversion of their Springerville coal plant to natural gas by 2030, which follows an earlier vote to convert another of their coal plants, Coronado, to natural gas by 2029. This coal conversion trap leaves ratepayers with the same amount of energy as before, eating up new natural gas capacity, without the benefit of more electricity.

So, while the Arizona utilities plan to collectively build an additional 4,538 MW of natural gas capacity over the next 15 years, at the same time they will be removing -3,549 MW (all of what is left on the grid today) of coal. And there are no plans for more nuclear capacity anytime soon. Instead, to meet their voluntary climate commitments, utilities plan to saddle ratepayers with the cost and resultant blackouts of the green new scam.

It’s no surprise then that Arizona’s largest regulated utilities, APS and TEP, are seeking double digit rate hikes next year. It’s not just Arizona. Excel customers in Colorado (with a 100% clean energy commitment) and in Minnesota (also with a 100% clean energy commitment) are facing nearly double-digit rate hikes. The day before Thanksgiving, PPL customers in Rhode Island (with a state mandate of 100% renewable by 2033) found out they may see rate hikes next year. Dominion (who has a Net Zero by 2050 commitmentwanted to raise rates for customers in Virginia by 15%. Just last month, regulators approved a 9% increase. Importantly, these rate increases are to recover costs for expenses incurred years ago, meaning they are clearly to cover the costs of the energy “transition” supercharged under the Biden administration, not from increased demand from data centers and AI.

It’s the same story around the country. Electricity rates are rising. Reliability is crumbling. We know the cause. For generations, we’ve been able to provide reliable energy at an affordable cost. The only variable that has changed has been what we are choosing to build. Then, it was reliable, dispatchable power. Now, it is intermittent sources that we know cost more, and that we know cause blackouts, all to meet absurd goals of going 100% renewable – something that no utility, state, or country has been able to achieve. And we know the result when they try.

This crisis can be avoided. Trump has laid out the plan to unleash American Energy. Now, it’s time for utilities to drop their costly green new scam commitments and go back to building reliable and affordable power that generations to come will benefit from.

Greg Blackie, Deputy Director of Policy at the Arizona Free Enterprise Club. Greg graduated summa cum laude from Arizona State University with a B.S. in Political Science in 2019. He served as a policy intern with the Republican caucus at the Arizona House of Representatives and covered Arizona political campaigns for America Rising during the 2020 election cycle.

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