Ottawa should stop using misleading debt measure to justify deficits

Based on the rhetoric, the Carney government’s first budget was a “transformative” new plan that will meet and overcome the “generational” challenges facing Canada. Of course, in reality this budget is nothing new, and delivers the same approach to fiscal and economic policy that has been tried and failed for the last decade.

First, let’s dispel the idea that the Carney government plans to manage its finances any differently than its predecessor. According to the budget, the Carney government plans to spend more, borrow more, and accumulate more debt than the Trudeau government had planned. Keep in mind, the Trudeau government was known for its recklessly high spending, borrowing and debt accumulation.

While the Carney government has tried to use different rhetoric and a new accounting framework to obscure this continued fiscal mismanagement, it’s also relied on an overused and misleading talking point about Canada’s debt as justification for higher spending and continued deficits. The talking point goes something like, “Canada has the lowest net debt-to-GDP ratio in the G7” and this “strong fiscal position” gives the government the “space” to spend more and run larger deficits.

Technically, the government is correct—Canada’s net debt (total debt minus financial assets) is the lowest among G7 countries (which include France, Germany, Italy, Japan, the United Kingdom and the United States) when measured as a share of the overall economy (GDP). The latest estimates put Canada’s net debt at 13 per cent of GDP, while net debt in the next lowest country (Germany) is 49 per cent of GDP.

But here’s the problem. This measure assumes Canada can use all of its financial assets to offset debt—which is not the case.

When economists measure Canada’s net debt, they include the assets of the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP), which were valued at a combined $890 billion as of mid-2025. But obviously Canada cannot use CPP and QPP assets to pay off government debt without compromising the benefits of current and future pensioners. And we’re one of the only industrialized countries where pension assets are accounted in such a way that it reduces net debt. Simply put, by falsely assuming CPP and QPP assets could pay off debt, Canada appears to have a stronger fiscal position than is actually the case.

A more accurate measure of Canada’s indebtedness is to look at the total level of debt.

Based on the latest estimates, Canada’s total debt (as a share of the economy) ranked 5th-highest among G7 countries at 113 per cent of GDP. That’s higher than the total debt burden in the U.K. (103 per cent) and Germany (64 per cent), and close behind France (117 per cent). And over the last decade Canada’s total debt burden has grown faster than any other G7 country, rising by 25 percentage points. Next closest, France, grew by 17 percentage points. Keep in mind, G7 countries are already among the most indebted, and continue to take on some of the most debt, in the industrialized world.

In other words, looking at Canada’s total debt burden reveals a much weaker fiscal position than the government claims, and one that will likely only get worse under the Carney government.

Prior to the budget, Prime Minister Mark Carney promised Canadians he will “always be straight about the challenges we face and the choices that we must make.” If he wants to keep that promise, his government must stop using a misleading measure of Canada’s indebtedness to justify high spending and persistent deficits.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

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Taxpayers Federation calls on politicians to reject funding for new Ottawa Senators arena

Published on December 11, 2025

Todayville

By Noah Jarvis

The Canadian Taxpayers Federation is calling on the federal, Ontario and municipal governments to publicly reject subsidizing a new arena for the Ottawa Senators.

“Politicians need to stand up for taxpayers and tell the Ottawa Senators’ lobbyists NO,” said Noah Jarvis, CTF Ontario Director. “Prime Minister Mark Carney, Ontario Premier Doug Ford and Ottawa Mayor Mark Sutcliffe all need to publicly reject giving taxpayers’ money to the owners of the Ottawa Senators.”

The Ottawa Citizen recently reported that “the Ottawa Senators have a team off the ice lobbying federal and provincial governments for funds to help pay the hefty price tag for a new arena.”

The Ottawa Senators said they don’t intend on asking the city of Ottawa for taxpayer dollars. However, the Ottawa Citizen reported that “it’s believed Senators’ owner Michael Andlauer would like a similar structure to the [Calgary] arena deal.” The Calgary arena deal included municipal subsidies.

As of December 2024, the Ottawa Senators were worth just under $1.2 billion, according to Forbes.

Meanwhile, both the federal and Ontario governments are deep in debt. The federal debt will reach $1.35 trillion by the end of the year. The Ontario government is $459 billion in debt. The city of Ottawa is proposing a 3.75 per cent property tax increase in 2026.

“Governments are up to their eyeballs in debt and taxpayers shouldn’t be forced to fund a brand-new fancy arena for a professional sports team,” said Franco Terrazzano, CTF Federal Director. “If the owners of the Ottawa Senators want to build a fancy new arena, then they should be forced to fund it with ticket sales not tax hikes.”

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Albertans give most on average but Canadian generosity hits lowest point in 20 years

Published on December 11, 2025

Todayville

From the Fraser Institute

By Jake Fuss and Grady Munro

The number of Canadians donating to charity—as a percentage of all tax filers—is at the lowest point in 20 years, finds a new study published by the
Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“The holiday season is a time to reflect on charitable giving, and the data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need,” said Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of Generosity in Canada: The 2025 Generosity Index.

The study finds that the percentage of Canadian tax filers donating to charity during the 2023 tax year—just 16.8 per cent—is the lowest proportion of Canadians donating since at least 2003. Canadians’ generosity peaked at 25.4 per cent of tax-filers donating in 2004, before declining in subsequent years.

Nationally, the total amount donated to charity by Canadian tax filers has also fallen from 0.55 per cent of income in 2013 to 0.52 per cent of income in 2023.

The study finds that Manitoba had the highest percentage of tax filers that donated to charity among the provinces (18.7 per cent) during the 2023 tax year while New Brunswick had the lowest (14.4 per cent).

Likewise, Manitoba also donated the highest percentage of its aggregate income to charity among the provinces (0.71 per cent) while Quebec and Newfoundland and Labrador donated the lowest (both 0.27 per cent).

“A smaller proportion of Canadians are donating to registered charities than what we saw in previous decades, and those who are donating are donating less,” said Fuss.

“This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond,” said Grady Munro, policy analyst and co-author.

Generosity of Canadian provinces and territories

Ranking (2025) % of tax filers who claiming donations Average of all charitable donations % of aggregate income donated

Manitoba 18.7 $2,855 0.71
Ontario 17.2 $2,816 0.58
Quebec 17.1 $1,194 0.27
Alberta 17.0 $3,622 0.68
Prince Edward Island 16.6 $1,936 0.45
Saskatchewan 16.4 $2,597 0.52
British Columbia 15.9 $3,299 0.61
Nova Scotia 15.3 $1,893 0.40
Newfoundland and Labrador 15.0 $1,333 0.27
New Brunswick 14.4 $2,076 0.44
Yukon 14.1 $2,180 0.27
Northwest Territories 10.2 $2,540 0.20
Nunavut 5.1 $2,884 0.15

NOTE: Table based on 2023 tax year, the most recent year of comparable data in Canada