CRISIS: Canadians face $92,500,000,000 in government debt interest

A new study from the Fraser Institute reveals Canadians will pay a staggering $92.5 billion in combined federal and provincial government debt interest payments in the 2024/25 fiscal year, translating to between $1,937 and $3,432 per person, depending on the province.

 The report, Federal and Provincial Debt-Interest Costs for Canadians, 2025 Edition, underscores the growing burden of government debt, which diverts funds from critical services like healthcare and education. 

 “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 Canadians,” said Jake Fuss, director of fiscal studies at the Fraser Institute.

Since Mark Carney's Liberal government took office after the federal election, critics, including the Canadian Taxpayers Federation and Conservative MPs, have accused the government of excessive spending, with no federal budget released to outline fiscal plans as of August 2025. 

Reports from outlets like Global News and the National Post highlight concerns over unaddressed deficits. The absence of a budget has fuelled debates about transparency and fiscal responsibility, particularly as Carney faces pressure to balance economic stimulus with Canada’s $2.3 trillion combined federal-provincial debt.

 Newfoundland and Labrador residents face the highest per-person cost at $3,432, followed by Manitoba at $2,868. Alberta, with the lowest combined debt per person, still sees $9.5 billion in interest costs, nearly matching its K-12 education budget. 

The federal government alone will spend $53.8 billion on debt servicing, surpassing its Canada Health Transfer ($52.1 billion) and far exceeding childcare benefits ($35.1 billion). Ontario and Quebec face interest costs of $36.2 billion and $21.8 billion, respectively, rivaling their education budgets.

“Governments across Canada continue to rack up large debts, which impose real costs on Canadians,” said Tegan Hill, co-author and director of Alberta Policy Studies at the Fraser Institute. 

The study highlights that these payments strain public finances, limiting resources for tax relief or essential programs. With combined federal-provincial debt projected at $2.3 trillion in 2024/25, the Fraser Institute urges governments to address this escalating fiscal challenge to ensure sustainable public services for Canadians.