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🇨🇦🍁💵 Size of Governments Across Canada on the Rise; Represented 44 Per Cent of The Economy in 2024

Wednesday, 25 March 2026 04:37.PM

The combined size of the federal, provincial, and municipal governments across Canada was equal to 43.6 per cent of the Canadian economy in 2024, and it increased in all ten provinces (relative to the sizes of their economies) from 2019 to 2024, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"The size of government relative to the size of the economy has been increasing across the country in recent years, with all 10 provinces seeing increases since 2019," said Jake Fuss, director of fiscal policy at the Fraser Institute and co-author of The Size of Government in Canada in 2024.

The study measures federal, provincial, and local government spending in each province as a share of the economy (GDP) from 2007 to 2024, the most recent year of comparable data.

From 2007 to 2024, the size of government increased in nine-of-ten provinces (except Prince Edward Island). But from 2019 to 2024, the size of government relative to the size of the economy increased in all ten provinces.

In 2024, the size of government relative to the economy as a whole across Canada ranged from a low of 30.4 per cent in Alberta to a high of 61.2 per cent in Nova Scotia and for the country as a whole it stood at 43.6 per cent.

Previous research has shown that the size of government (as a share of the economy) to maximize economic growth and social progress is between 26 and 30 per cent of the economy (GDP). When governments exceed that size, it imposes negative effects on the economy, such as crowding out private sector investment and lowering rates of economic growth, but without providing proportionate benefits such as greater social progress.

Put simply, the size of government in every Canadian province is above the optimal size to maximize economic growth. In some provinces, it is twice as large as the optimal size.

"It's important to understand just how much governments across Canada have grown in recent years, and what impact that might have on our economy moving forward," Fuss said.

Total Consolidated Government Spending as a Percentage of GDP

Province / 2007 / 2024

Nova Scotia - 56.9 % - 61.2 %
New Brunswick - 52.7 % - 60.6 %
Prince Edward Island - 61.6 % - 58.7 %
Manitoba - 45.0 % - 52.7 %
Quebec - 47.4 % - 50.1 %
Newfoundland and Labrador - 38.7 % - 49.7 %
Ontario - 35.8 % - 43.4 %
British Columbia - 34.8 % - 40.0 %
Saskatchewan - 37.7 % - 39.7 %
Alberta - 22.4 % - 30.4 %

SOURCE The Fraser Institute

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