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VANCOUVER — The combined size of government across Canada reached 43.6 per cent of the economy in 2024, with spending increasing in every province since 2019, according to a new study from the Fraser Institute.
The report measures federal, provincial and municipal spending as a share of gross domestic product and tracks trends from 2007 to 2024, the most recent year of comparable data.
While government size grew in nine of 10 provinces over that period, the study found all provinces saw increases relative to their economies between 2019 and 2024.
Alberta recorded the lowest level of government spending in the country in 2024 at 30.4 per cent of GDP, up sharply from 22.4 per cent in 2007. Despite remaining the smallest government footprint in Canada, the increase reflects a notable expansion in spending relative to the province’s economy over time.
By comparison, Nova Scotia posted the highest level at 61.2 per cent, followed by New Brunswick at 60.6 per cent and Prince Edward Island at 58.7 per cent. Manitoba reached 52.7 per cent, Quebec 50.1 per cent and Newfoundland and Labrador 49.7 per cent. Ontario stood at 43.4 per cent, while British Columbia and Saskatchewan registered 40 per cent and 39.7 per cent respectively.
The national figure of 43.6 per cent places Canada above what the study describes as an optimal range for government size, which previous research suggests falls between 26 and 30 per cent of GDP.
The report says higher levels of government spending can crowd out private sector investment and slow economic growth without delivering proportionate gains in social progress.
Jake Fuss, director of fiscal policy at the Fraser Institute and co-author of the study, says the findings highlight how much governments have grown in recent years and raise questions about the economic impact moving forward.
For Alberta, the study suggests the province continues to maintain a relatively smaller government compared with the rest of the country, even as spending has increased in the years following 2019.
The Fraser Institute is a Vancouver-based public policy think tank.
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