Government Debt in Canada as of 2017

Government Debt in Canada as of 2017

Upon the release of the annual budgets by the federal and provincial, increasing debt and budget deficits are key issues. We have seen an increase in the combined federal and provincial net debt from $833 billion in 2007 to a projected $1.4 trillion in 2017. The combination of the net debt equates to 67.5% of Canada’s economy.

government debt in canada

Government Debt in Canada : With debt accumulations comes costs and one major outcome is that the government makes interest payments on their debt. This is similar to households that have to pay interest on borrowing; mortgages, vehicles, or spending on credit cards. Spending on interest payments will lead to less money available for other priorities such as spending that goes towards health care, education, or tax relief.

The Canadian government (both local and federal) spent $62.8 billion collectively on interest payments in 2015-2016, which works out to be 8.1% of their total revenue in that year. The total amount spent on interest payments is the equivalency of Canada’s spending on public primary and secondary education.


Disclaimer:
This article only provides information in a general nature and is only as current as the date in which it is posted. It is not updated and therefore may no longer be current. This document should not be relied upon as it does not claim to, nor provide advice on legal or tax matters. All tax situations are specific in nature and will likely differ from the situations that are presented in the article. It is advisable that you seek and consult a tax professional if you have any specific legal or tax questions. This document is intended to provide general information on a particular subject or subjects(s) and this article is not an exhaustive treatment of such subject(s). In accordance, the information in this document is not intended to constitute or replace accounting, tax, legal, investment, consulting, or other professional advice or services. Before any decision is made, or any action taken which might affect your personal finances or business, you should consult a qualified, professional adviser.

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