Study
| EST. READ TIME 1 MIN.“New Normal” federal spending at unprecedented levels; per person federal spending in 2021 to exceed $13,000— 34.8 per cent higher than 2019
Prime Ministers and Government Spending: Updated 2021 Edition
Summary
- Per-person federal program spending (adjusted for inflation) reached $17,121 in 2020-21, by far the highest level in Canada’s history.
- Non-COVID-related per-person spending in 2020-21 was $11,165.
- Moreover, federal spending is estimated to reach between $13,032 to $13,735 per-person in 2021-22, which would represent the second highest level in the country’s history.
- For context, 2021-22 per-person spending will be 42.4% to 50.0% higher than during the 2009 recession. Per-person spending in 2021- 22 is also projected to be 64.8% to 73.7% higher than at the peak of World War II.
- Per-person spending is expected to decrease in 2022-23, ranging between $10,846 and $11,446. It is still projected to be 12.2% to 18.4% higher than the level seen in 2019-20, which was the highest level of spending pre-COVID.
- Prime Minister Justin Trudeau is on track to record the five highest levels of per-person spending (2018, 2019, 2020, 2021, and 2022) in Canadian history.
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Jake Fuss
Director, Fiscal Studies, Fraser Institute
Jake Fuss is Director of Fiscal Studies for the Fraser Institute. He holds a Bachelor of Commerce and a Master’s Degree inPublic Policy from the University of Calgary. Mr. Fuss has written commentaries appearing in major Canadian newspapers including the Globe and Mail, Toronto Sun, and National Post. His research covers a wide range of policy issues including government spending, debt, taxation, labour policy, and charitable giving.… Read more -
Milagros Palacios
Director, Addington Centre for Measurement, Fraser InstituteMilagros Palacios is the Director for the Addington Centre for Measurement at the Fraser Institute. She holds a B.S. in IndustrialEngineering from the Pontifical Catholic University of Peru and a M.Sc. in Economics from the University of Concepcion, Chile. Ms. Palacios has studied public policy involving taxation, government finances, investment, productivity, labour markets, and charitable giving, for nearly 10 years. Since joining the Institute, Ms. Palacios has authored or coauthored over 70 comprehensive research studies, 70 commentaries and four books. Her recent commentaries have appeared in major Canadian newspapers such as the National Post, Toronto Sun, Windsor Star, and Vancouver Sun.… Read more -
Nathaniel Li
Senior Economist, Fraser InstituteNathaniel Li is a Senior Economist at the Fraser Institute. He holds a B.A. from the Fudan University in China anda Ph.D. in Food, Agricultural and Resource Economics from the University of Guelph. Prior to joining the Fraser Institute, he worked for the University of Toronto as a postdoctoral fellow and the University of Guelph as a research associate. His past research work has been published in many high-quality, peer-reviewed academic journals, including the Applied Economic Perspectives and Policy, Agricultural Economics, Preventive Medicine, and Canadian Public Policy. His current research covers a wide range of issues in fiscal, education, and labour-market policies.… Read more -
Tegan Hill
Director, Alberta Policy, Fraser Institute
Tegan Hill is Director, Alberta Policy at the Fraser Institute. She holds a Bachelor of Economics and a Master’s Degree inPublic Policy from the University of Calgary. Ms. Hill’s articles have appeared in major Canadian newspapers including the Globe and Mail, National Post, and Ottawa Citizen. She specializes in government spending, taxation, and debt.… Read more