(November 25 – 10:20 ET) – The
Fraser Institute’s yearly debt
study is pegging the total debt
load of our federal, provincial,
and municipal governments at $850
billion in direct debt and $3.5
trillion in total government
liabilities. That’s a total of
$115,777 in total liabilities for
each man, woman, and child in
Canada.
The study says that from 1994 to
1998, direct debt grew from $739
billion to $850 billion, a 15%
increase. Total liabilities are up
21% in the period, including
direct debt, debt guarantees,
contractual commitments, contingent
liabilities, and obligations.
“Most of the increase in total
liabilities is due to substantial
increase in unfunded liabilities
[which includes Old Age Security,
the Canada Pension Plan, and
health care],” says the
Insititute.
Ontario has the heaviest burden,
argues the Fraser. Federal,
provincial and local liabilities
add up to $126,938 for each
Ontarian. Albertans are next at
$119,464, followed by Quebecers at
$114,248, and British Columbians
at $108,441.
The study found that the CPP
unfunded liability grew by 58.8%
between 1992 and 1998. Total, CPP,
OAS, and healthcare unfunded
liabilities grew by 45.6% during
that same period, contends the
Institute.
“While the direct debt of
governments is beginning to decline
absolutely and as a fraction of our
total national income, obligations
are trending steadily upwards.
Canadians are just beginning to
recognize the significant
challenge posed by these
accumulating obligations and there
are, as yet, no Canadian solutions
proposed to deal with them,” says
Jason Clemens, director of fiscal
studies at the conservative think
tank.
-IE Staff
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