TORONTO, Feb. 25, 2021 (GLOBE NEWSWIRE) -- The Ontario government will spend more on interest costs in 2020-21 than post-secondary education, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.
“Interest must be paid on government debt, and the more money governments spend on interest payments the less money is available for the programs and services that matter to Ontarians,” said Steve Lafleur, a senior policy analyst at the Fraser Institute and author of Federal and Provincial Debt Interest Costs for Canadians.
The study finds that taxpayers across Canada will pay a total of $49.6 billion—or about $4 billion a month—in interest payments for the federal and provincial debts this year alone.
In Ontario, taxpayers will pay $12.5 billion in provincial interest costs alone, which is more than the provincial government will spend on post-secondary education ($10.7 billion).
On a per person basis, each Ontarian will pay $1,375 in interest this year to service the federal and provincial debt. That’s more than $5,000 for a family of four.
“Even before the COVID-19 pandemic and recession, governments at Queen’s Park and in Ottawa have been racking up large debts, and this debt imposes real costs on Ontario taxpayers,” said Jake Fuss, a senior economist at the Fraser Institute and study co-author.
“Interest payments for Ontario taxpayers are substantial, and that takes money away from other important priorities.”
MEDIA CONTACT:
Steve Lafleur, Senior Policy Analyst
Fraser Institute
Jake Fuss, Senior Economist
Fraser Institute
To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
Tel: (604) 688-0221 Ext. 721
E-mail: drue.macpherson@fraserinstitute.org
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org