Elbows-up Economics

Each Canadian taxpayer is expected to pay between $1,845 and $3,348 in interest on federal and provincial debt this year, depending on the province they reside in, a recent study finds.

Over half of the combined interest costs come from the federal government. Based on projections from the Department of Finance, the think tank said Ottawa is expected to spend $54 billion on debt servicing charges in 2025–26. The amount, which also represents 10.6 percent of total federal revenues, is “roughly equivalent to what the government spent on the Canada Health Transfer ($54.7 billion),” and “significantly” more than the $38.1 billion it expects to spend on child care benefits.

Federal and Provincial Debt-Interest Costs for Canadians, 2026 Edition | Fraser Institute