Government spending facts 2

Government spending facts 2

by Isabella Horry

1994

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This study analyses spending by the three levels of government - federal, provincial, and local - and constructs a profile of who benefits from government expenditure. In 1990 government redistributed 10.0% of GDP through social programs (other than CPP), an increase from 6.7% in 1970. Interest payments made up 20.3% of government spending in 1990, up from 10.4% in 1970. The province that received the least total government spending per capita in 1990 was British Columbia, at $10,647. The province that received the most spending per capita was Nova Scotia, at $12,372, while of all governments, the Territories received the most from all levels of government, at $27,707 per capita. All provinces have experienced an increase in the fraction of government spending to total provincial GDP since 1970. Social security payments for all the Atlantic provinces amount to only 10.8% of total social security payments made in the country. Of the provincial/territorial governments, the Territories spend the most per capita, followed by Alberta, while Prince Edward Island spends the least. Ontario receives 60% of all federal interest paid on the outstanding public debt, and yet it pays just 45% of the taxes collected by the federal government.

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