THE GROWING BURDEN OF INTEREST COSTS

• 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. These interest payments consume resources that could have been used for tax relief or for health care, education, and social services.
• On aggregate, the provinces and federal government are expected to spend $54.8 billion on interest payments in 2019-20. For a Canadian family of four, interest costs will translate to an average of $5,830.
• Residents in Newfoundland & Labrador face by far the highest combined federal-provincial interest payments per person ($3,343). Ontario, Canada’s most populous province, is the next highest at $1,550 per person.