VANCOUVER, BC, Aug. 21, 2025 /CNW/ - Combined government debt interest payments for both the federal and provincial governments in Canada will cost $92.5 billion in 2024/25—or between $1,937 and $3,432 per Canadian depending on the province, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"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 and co-author of Federal and Provincial Debt Interest Costs for Canadians, 2025 edition.

The study finds that taxpayers across Canada will pay a total of $92.5 billion on interest payments for the federal and provincial government debts in 2024/25 alone.

The federal government will spend $53.8 billion on debt servicing charges in 2024/25, which is significantly more than the government expects to spend on the Canada Child Benefit and Canada-wide Early Learning and Child Care benefit ($35.1 billion) and more than the Canada Health Transfer payments to the provinces ($52.1 billion).

Nationally, Newfoundland and Labrador's combined federal and provincial interest costs is the highest in the country at $3,432 per person. Manitoba is the next highest at $2,868 per person. Alberta's combined federal and provincial interest costs are the lowest in the country at $1,937 per person.

Meanwhile, total expenditures on interest costs for Ontario ($38.4 billion), Quebec ($23.0 billion), and Alberta ($9.5 billion) are roughly equivalent to expected spending on K-12 education in their respective provinces this year.

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

"Interest payments across the country are substantial, and money that goes to creditors is money that is not available for other important priorities."

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute