Spending from all three levels of government and other government entities in Canada combined — also known as general government spending — reached a new high in 2024, according to Statistics Canada.
On a nominal basis, spending — excluding consumption of fixed capital and acquisition of non-financial assets — was $1.1 trillion in 2024, up 3.1% from 2023. It was the second consecutive year that total spending exceeded the $1-trillion mark reached in 2020 in response to the Covid pandemic, the federal statistics agency noted.
Social protection (24.9% of total spending) remained the highest spending category by function of the Canadian general government, followed by health (23.7% of total spending). Together, these areas amounted to nearly half of all spending by all levels of government in 2024.
Social protection includes Old Age Security benefits, family benefits, disability payments and unemployment benefits, among other programs.
Spending on social protection by all levels of government fell by 3.2% on an annual basis to $283.1 billion in 2024 due to lower social exclusion spending, which was comprised of largely one-time expenses in 2023. These expenses included the First Nations child and family services, Jordan’s Principle and Trout class settlement agreement, an agreement between the federal and Ontario governments to pay compensation for underpaid annuities under the Robinson-Huron Treaty, and the Canada grocery rebate.
On the flip side, Canadian general government spending on unemployment, sickness and disability, old age, and family and children increased in 2024 by $6.9 billion, $4.8 billion, $4.7 billion and $4.4 billion, respectively.
Spending on health at the consolidated provincial, territorial and local government level grew 7% to $258.9 billion in 2024.
Among provincial, territorial and local governments, hospital services accounted for the largest proportion of health expenses (67.3%), followed by outpatient services (16.3%) and medical products, appliances and equipment (6.9%).
Per-capita spending on health in the provinces in 2024 was highest in Newfoundland and Labrador ($8,026), Nova Scotia ($7,252) and New Brunswick ($7,036). The lowest per-capita health expenses were in Alberta ($5,669), Ontario ($5,679) and Prince Edward Island ($6,150).